Un.ted States                 EPA-600/7-81-025

               Environmental Protection
               Agency                   March 1981
&EPA        Research and
               Development
              ENVIRONMENTAL ASPECTS OF

              SYNFUEL UTILIZATION
               Prepared for
              All EPA Program and Regional Offices
              Prepared by

              Industrial Environmental Research
              Laboratory
              Research Triangle Park NC 27711

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                  RESEARCH REPORTING SERIES


 Research reports of the Office of Research and Development, U.S. Environmental
 Protection Agency, have been grouped into nine series. These nine broad cate-
 gories were established to facilitate further development and application of en-
 vironmental technology. Elimination of traditional  grouping  was consciously
 planned to foster technology transfer and a maximum interface in related fields
 The nine series are:

     1  Environmental Health Effects Research

     2. Environmental Protection Technology

     3. Ecological Research

     4. Environmental Monitoring

     5. Socioeconomic Environmental Studies

     6. Scientific and Technical Assessment Reports  (STAR)

     7. Interagency Energy-Environment Research and Development

     8. "Special" Reports

     9. Miscellaneous Reports

 This report has been assigned to the INTERAGENCY ENERGY-ENVIRONMENT
 RESEARCH AND DEVELOPMENT series Reports in this series result from the
 effort funded  under  the  17-agency  Federal  Energy/Environment Research and
 Development Program These studies relate to EPA's mission to protect the public
 health and welfare from  adverse effects of pollutants  associated with energy sys-
 tems. The goal of the Program is to assure the rapid development of domestic
 energy supplies in an environmentally-compatible manner by providing the nec-
 essary environmental data and control technology. Investigations include analy-
 ses of the transport of energy-related pollutants and their health and  ecological
 effects, assessments of,  and development of, control technologies for energy
 systems: and integrated assessments of a wide range of energy-related environ-
 mental issues.
                        EPA REVIEW NOTICE
This report has been reviewed by the participating Federal Agencies, and approved
for publication. Approval does not signify that  the contents necessarily reflect
the views and policies of the Government, nor does mention of trade names or
commercial products constitute endorsement or recommendation for use.

This document is available to the public through the National Technical Informa-
tion Service, Springfield, Virginia 22161.

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                                            EPA-600/7-81-025
                                            March 1981
         ENVIRONMENTAL ASPECTS
         OF SYNFUEL UTILIZATION


                    by

            M. Ghassemi and R. Iyer
                   TRW
  ENVIRONMENTAL ENGINEERING DIVISION
            Redondo Beach, CA  90278
         EPA Contract No. 68-02-3174
          Work Assignment No. 018
       EPA Program Element No. CCZN1A
          Project Officer: J. McSorley

   Industrial Environmental Research Laboratory
Office of Environmental Engineering and Technology
       Research Triangle Park, N.C.  27711
                Prepared for:

 U.S. ENVIRONMENTAL PROTECTION AGENCY
       Office of Research and Development
            Washington, D.C.  20460

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                                   ABSTRACT
     This study  reviews  the  environmental  concerns  relating to the distri-
bution, handling,  and  end  use  of  synfuel  products  likely to enter the
marketplace by the year  2000 and  assigns  priority  rankings to these
products based on  environmental concerns  in  order  to  aid EPA in  focusing
its regulatory and research  activities.   Major  products and by-products of
oil shale, coal  liquefaction,  and  coal  gasification technologies are
considered.

     Based on  current  developmental  activities,  three likely scenarios  for
shale- and coal-based  synfuel  plant  build-up  are projected.  The type and
quantity of synfuel  products and  by-products  likely to enter the market are
identified, and  their  regional market  penetration  is  estimated.  The
environmental  analysis consists of a review  of  the  available data on the
physical, chemical,  and  health effects  characteristics of  synfuel products
and the environmental  significance of  these  characteristics; an  analysis of
the potential  environmental  impacts  and  regional implications associated
with the production  and  use  scenarios  considered;  and a ranking  of the
products from  the  standpoint of environmental concerns and mitigation
requirements.

     The results  indicate  that: (a)  significant  quantities of synfuel
products are expected  to enter the marketplace  during the  next 20 years,
(b) large-scale  transportation, distribution, and  end use  of certain
synfuel products  can present significant  threats to the environment and the
public health, (c) based on  gross  characteristics,  synfuel products appear
to be  similar  to  petroleum-based  products, but  detailed characterization
data are not available to  permit  judgements  of  their  relative safety, and
(d) synfuel test  and evaluation programs  currently  underway or planned
provide excellent  opportunities for collecting  some of the required
environmental  data.

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                                 CONTENTS

Abstract	    ii
Figures	    vi
Tables   	    viii
Acknowledgement  	    xii
1.   INTRODUCTION 	    1
    1.1  Background and an Overview of Current EPA Synthetic Fuels
         Environmental Assessment Programs 	    1
    1.2  Objective of the Synfuel Utilization Study  	    2
    1.3  Methodology 	    2
    1.4  Initial Examinations  	    4
    1.5  Synfuel Utilization Projections 	    4
         1.5.1  Types and Quantities of Synfuel  Products/By-Products
                Entering the Market  	    4
         1.5.2  Market Analysis of Synfuel Products/By-Products     •  •    5
    1.6  Environmental Analysis and Product Ranking  	    5
         1.6.1  Development of Data Base on Synfuel Product
                Characteristics  	    5
         1.6.2  Analysis of Potential  Areas of Environmental Concern
                and Regional Implications of Synfuel Product
                Utilization  	    6
         1.6.3  Priority Ranking of Synfuel Products 	    6
    1.7  Background Information  	    7
2.   SYNFUEL PRODUCTION OVER THE NEXT TWENTY YEARS  	    £
    2.1  Synfuel Production Scenarios   	    £
         2.1.1  Perspectives for Synfuel Production Scenarios  ....    8
         2.1.2  Synfuel Industry Build-up Scenarios  	    20
         2.1.3  Other Synfuel Production Projections 	    23
    2.2  Synfuel Plant and Product Build-up Scenarios  	    25
         2.2.1  Shale Oil  	    26
         2.2.2  Coal Liquefaction and  Gasification   	    36
3-   MARKET ANALYSIS OF SYNFUEL PRODUCTS AND BY-PRODUCTS  .   	
    3.1  Likely Location of Synfuel Plants  	
o

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                           CONTENTS  (Continued)

         3.1.1  Oil Shale  Plant  Location	    50
         3.1.2  Coal Conversion  Plant Location   	    50
    3.2  Synfuel Product Utilization  	    53
         3.2.1  Gaseous Products   	    56
         3.2.2  Light Distillates    	    58
         3.2.3  Middle Distillates   	    59
         3.2.4  Residuals	    59
         3.2.5  Petrochemical  Feedstocks and Other By-Products. ...    60
    3.3  Regional Market Penetration of Synfuel  Products  	    61
         3.3.1  Shale Oil	    61
         3.3.2  Coal Gas	    63
         3.3.3  Coal Liquefaction  Products	    66
         3.3.4  Petrochemical  Feedstocks and Other By-Products. ...    73
         3.3.5  Summary of Synfuel Product Utilization by Region  .   .    76
4,  CHARACTERISTICS OF SYNFUEL PRODUCTS 	    99
    4.1  Physical/Chemical Characteristics  	    99
         4.1.1  Shale Oil Products    	    99
         4.1.2  Direct Coal Liquefaction Products 	   101
         4.1.3  Indirect Coal  Liquefaction Products 	   103
         4.1.4  Coal Gasification  Products	   104
         4.1.5  Summary of the Data Currently Available and Data Gaps
                from an Environmental Assessment Standpoint 	   106
    4.2  Combustion Characteristics 	   107
         4.2.1  Shale Oil Products	   107
         4.2.2  Direct Coal Liquefaction Products 	   109
         4.2.3  Indirect Liquefaction Products   	   112
         4.2.4  Coal Gasification  Products	   112
         4.2.5  Summary of the Data Currently Available and the Data
                Gaps from an Environmental Assessment Standpoint  .   .   114
    4.3  Biological  and Health Effects Characteristics  	   114
         4.3.1  Shale Oil  Products	   114
         4.3.2  Direct Liquefaction Products  	   116
         4.3.3  Indirect  Liquefaction Products   	   118

                                    iv

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                           CONTENTS (Continued)

         4.3.4  Coal Gasification Products	   119
         4.3.5  Summary of the Data Currently Available and Data .  .
                Gaps from an Environmental Assessment Standpoint .  .   .120
    4.4  Relevant Comments from Potential Major Synfuel Suppliers
         and Users	   120
5-  ENVIRONMENTAL ANALYSIS OF SYNFUEL UTILIZATION AND POTENTIAL
    AREAS OF MAJOR ENVIRONMENTAL CONCERN 	   126
    5.1  Significance of Reported Synfuel Products Characteristics      126
    5.2  Estimated/Anticipated Characteristics of Various Synfuel
         Products and Associated Environmental Concerns  	   129
    5.3  Applicable Controls and Regulatory Considerations 	   139
         5.3.1  Applicable Controls and Mitigation Measures  ....   139
         5.3.2  Significant Relevant Statutes and Regulations  ...   140
    5.4  Environmental  Impacts Associated with Various Production
         and Use Scenarios and Regional Considerations   	   145
         5.4.1  Shale Oil  Products   	   145
         5.4.2  Low-/Medium-Btu Coal Gas Products	   154
6.  PRIORITY RANKING OF SYNFUEL PRODUCTS FROM THE STANDPOINT OF
    ENVIRONMENTAL CONCERNS   	   157
    6.1  Basis for Product Ranking	   157
    6.2  Attribute Rating Procedure  	   162
         6.2.1  Exposure	   162
         6.2.2  Emission Factor	   164
         6.2.3  Toxic Hazard   	   164
         6.2.4  Cost of Control  	   165
         6.2.5  Adequacy of Existing Regulations   	   165
    6.3  Products Ranking  	   168
7.  DATA GAPS AND LIMITATIONS AND RELATED PROGRAMS	   171
    7.1  Major Factors  Responsible for Data Gaps and Limitations .  .   171
    7.2  Specific Data  Gaps and Limitations	   173
    7.3  Related Programs  	   174
         7.3.1  Environmental and Health Effects Programs  	   175
         7.3.2  Combustion Characteristics 	   175

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                                 FIGURES
Number
  1     Synfuel  Industry Build-Up for the National Goal Scenario .  .    21
  2     Synfuel  Industry Build-Up for the Nominal Production
        Scenario	    23
  3     Synfuel  Industry Build-Up for the Accelerated
        Production Scenario 	    25
  4     Oil Shale Product Build-Up for Scenario I   	    34
  5     Oil Shale Product Build-Up for Scenario II  	    35
  6     Oil Shale Product Build-Up for Scenario III 	    35
  7     Coal Liquefaction Product Build-Up for Scenario I   	    46
  8     Coal Liquefaction Product Build-Up for Scenario II  	    46
  9     Coal Liquefaction Product Build-Up for Scenario III   ....    47
 10     Oil Shale Deposits Most Likely to be Used for Synfuel
        Production	    51
 11     Coal Resources Most Likely to be Used for Synfuel Production    52
 12     Likely Locations for Synthetic Fuel Plants  	    54
 13     Synfuel Utilization During 1985-2000  	    62
 14     Synfuel Production and Utilization Regions - Scenario II
        1980-1987   	    78
 15     Synfuel Production and Utilization Regions -
        Scenario II - 1988-1992	    82
 16     Synfuel Production and Utilization Regions -
        Scenario II - 1993-2000	    89
 17     Estimated Utilization Pattern for Shale Oil Products;
        Scenario II, 1980-1987 Time Period	146
 18     Estimated Utilization  Pattern for Shale  Oil  Products;
        Scenario II,  1908-1992 and  1993-2000 Time Period  	   147
 ,q     Estimated Utilization  Pattern for Low-/Hediun-Btu Gas;
        Scenario II,  19CO-19C7 Time  Period 	   148
                                   VI

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                          FIGURES (Continued)

Number

  20    Estimated Utilization Pattern for Indirect Coal
        Liquefaction Products; Scenario II,  1988-1993 Time
        Period	149

  21     Estimated Utilization Pattern for Indirect Coal
        Liquefaction Products; Scenario II,  1993-2000 Time
        Period	150

  22    Estimated Utilization Pattern for Direct Coal
        Liquefaction Products; Scenario II,  1988-1992 Time
        Period	152

  23    Estimated Utilization Pattern for Direct Coal
        Liquefaction Products; Scenario II,  1993-2000 Time
        Period	152
                                    VI1

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                                   TABLES
Number
   1    Synfuel  Market Overview  	       3
   2    U.S. Oil Shale Projects   	      10
   3    Coal Gasifiers for High-, Medium-, and Low-BTU Gas  ....      13
   4    Status of other Coal Gasification Processes 	      14
   5    Major Coal Liquefaction Processes 	      16
   6    Synfuel Projections   	      24
   7    Oil Shale Plant Build-Up, Scenario I  	      27
   8    Oil Shale Plant Build-Up, Scenario II 	      28
   9    Oil Shale Plant Build-Up, Scenario III  	      29
  10    Current Permitting Status of Oil Shale Projects 	      30
  11    Process Technologies Under Consideration  	      36
  12    Coal Liquefaction Plant Build-Up for Scenario I 	      37
  13    Coal Liquefaction Plant Build-Up for Scenario II  	      38
  14    Coal Liquefaction Plant Build-Up for Scenario III 	      38
  15    Coal Gasification Plant Build-Up for Scenario I 	      42
  16    Coal Gasification Plant Build-Up for Scenario II  	      42
  17    Coal Gasification Plant Build-Up for Scenario III   ....      43
  18    Maximum Anticipated Shale Oil Production Rate for
        Scenario II	      50
  19    Number of Coal Conversion Plants Needed On-Stream to Meet
        the Requirements of the Nominal Production Scenario -
        Scenario II	      55
  20    Types  and Quantities of Coal  Conversion Products Produced
        from Plants on Stream for the Nominal Production
        Scenario - Scenario II	      68
  21     Comparison of Petrochemical  Feedstocks and Other By-Products
        Produced to Meet the Goals of Scenario II  Vs.  Scenario I
        and Scenario III	      74
  22    Likely Utilization Patterns  of Major Synfuel  Products By
        Regions-Scenario II, 1980-1987 Time Period (In MMBPD) ...      77
  23    Likely Utilization Patterns  of Major Synfuel  Products By
        Regions  and by Sectors—Scenario II--1980-1987 Time
        Period-Region  VIII (In MMBPD)	      79

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                           TABLES (Continued)

Number

  24    Likely Utilization Patterns of Major Synfuel  Products
        by Regions and by Sectors—Scenario II—1980-1987 Time
        Period-Region V (In MMBPD)	    80

  25    Likely Utilization Patterns of Major Synfuel  Products by
        EPA Regions-Scenario II--1988-1992 Time Period (In MMBPD). .    81

  26    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and by Sectors—Scenario II--1988-1992 Time Period,
        Region V (In MMBPD)	    83

  27    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and by Sectors—Scenario II--1988-1992 Time Period,
        Region VIII (In MMBPD)	    84

  28    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and by Sectors—Scenario II—1988-1992 Time Period
        Region X (In MMBPD)	    85

  29    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and by Sectors—Scenario II--1988-1992 Time Period
        Region IX (In MMBPD)	    86

  30    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and by Sectors—Scenario II--1988-1992 Time Period
        Region VII (In MMBPD)	    87

  31    Likely Utilization Patterns of Major Synfuel  Projects by
        EPA Regions, Scenario II  — 1993-2000 Time Period (In MMBPD)    90

  32    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and by Sectors—Scenario 11--1993-2000 Time Period
        Region III (MMBPD)	    91

  33    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and by Sectors—Scenario 11--1993-2000 Time Period
        Region IV (In MMBPD)	     92

  34    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and by Sectors—Scenario 11—1993-2000 Time Period
        Region V (In MMBPD)	    93

  35    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and by Sectors—Scenario 11--1993-2000 Time Period
        Region VI (In MMBPD)	    94

  36    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and By Sectors—Scenario 11--1993-2000 Time Period
        Region VIII (In MMBPD)	    95

  37    Likely Utilization Patterns of Major Synfuel  Products by
        Regions and by Sectors—Scenario 11—1993-2000 Time Period
        Region X (In MMBPD)	    96
                                    IX

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                           TABLES (Continued)

Number

  38    Likely Utilization Patterns of Major Synfuel Products
        by Regions and By Sectors—Scenario II—1993-2000 Time Period
        Region VI (In MMBPD)	       97

  39    Like Utilization Patterns of Major Synfuel Products by
        Regions and by Sectors—Scenario 11—1993-2000 Time Period
        Region VII (In MMBPD)	       93

  40    Combustion Test Results for SRC II Fuel Oils   	      110

  41    Combustion Test Results for H-Coal Fuels 	      Ill

  42    Combustion Test Results for EDS Coal  Liquids	      113
  43    Summary of Health Effects Data for SRC II Products ana
        (Where Available) for Petroleum Analogs  	      117

  44-    Health Effects Test Results for H-Coal Fuel  Oils	      113

  45    Summary of Comments from Synfuel Suppliers on the
        Relative Characteristics of Synfuels and Petroleum
        Products   	      121

  46    Summary of Comments from Potential Synfuel Users on
        the Relative Characteristics of Synfuels and Petroleum
        Products	      123

  47    Reported Known Differences in Chemical, Combustion, and
        Health Effects Characteristics of Synfuel Products and
        Their Petroleum Analogs  	      127

  48    Sources and Nature of Environmental Concerns in the
        Utilization of Shale Oil Products  	      130

  49    Sources and Nature of Environmental Concerns in the
        Utilization of Coal Liquefaction Products  	      133

  50    Sources and Nature of Environmental Concerns in the
        Utilization of Coal Gases	      137

  51     OSHA Standards for Materials Known or Suspected to be
        Present in Lurgi  SNG Plants	      144

  52    Quantity of Various Shale Oil  Products in Relation to
        Petroleum Analogs in the EPA Region of Maximum Shale
        Oil  Product Use and on  a National  Basis for Scenario II  .      155

  53     Estimated Quantities of Synfuel  Products Used in the
        U.S.:  1980-87	      159
  54     Estimated Quantity of Synfuel  Products Used in the
        U.S.:  1988-1992	      160

  55     Estimated Quantities of Synfuel  Products Used in the
        U.S.:  1993-2000	      161

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                          TABLES (Continued)
Number
  56    Relative Assessment of the Environmental Hazards
        Associated with Synfuel  Products and Petroleum Analogs .  .    163
  57    Priority Rankings of Synthetic Fuel  Products 	    169
  58    Chemical, Biological  and Ecological  Testing of Paraho/
        Sohio Crude and Refined  Shale Oil  Suite	    176
  59    Health Effects Testing for Direct Coal  Liquids   	    177
                                    XI

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                               ACKNOWLEDGMENT

     This study and the preparation of this report have involved
participation of professionals from two organizational elements of TRW:
Environmental Engineering Division, Redondo Beach, CA  ; and Energy
Engineering Division, McLean, VA.  The following  individuals have
participated in the study:
     Environmental Analysis

     M. Ghassemi  (Team Leader)
     R. Scofield
     R. Maddalone
     S. Quinlivan
     J. Cotter
     L. Fargo
     J. Dadiani
Synfuel Utilization Projections

R. Iyer (Team Leader)
E. Bohn
D. Dickehuth
M. Oyster
W. Parker
             Interviews with Major Potential Suppliers/Users

                               E.  Bohn
                               J.  Cotter
                               J.  Cowles
                               R.  Iyer
                               K.  Lewis
      The project is deeply indepted to the EPA Project Officer, Mr. Joe
 McSorley, for his continuing advice and guidance during the course of the
 effort.  Those on the project staff wish to express their gratitude to the
 process developers who provided data for use in synfuel utilization
 projections and the potential suppliers and users of synfuel products
 listed in Appendix A who granted interviews expressing their views on
 synfuel commercialization, product utilization, and related environmental
 issues.

      Special  thanks are due to Ms. Judy Bolster and Ms. Carol Jeffrey for
 their secretarial  service, to Ms. Alice Lowthrop for her editorial review,
 and  to Mrs. Deborah Milanowski and Ms. Kathy Trujillo for Word Processing
 services.
                                    Xll

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                                 SECTION 1

                                INTRODUCTION
1.1   BACKGROUND AND AN OVERVIEW OF CURRENT EPA SYNTHETIC  FUELS
      ENVIRONMENTAL ASSESSMENT PROGRAMS

     The recognition of the limited availability of domestic  supplies  of
natural  gas and crude oil and of the necessity to reduce the  country's
dependence on foreign sources of energy have promoted significant
commitments by the U.S. government and the industry to the development  of  a
major domestic synthetic fuels industry.  The government commitments are
demonstrated by the recent establishment of the U.S. Synthetic Fuels
Corporation to help and fund commercial projects and the Energy
Mobilization Board to speed permitting of energy facilities.  The  industry
has been heavily involved in the development, test and demonstration of
various energy technologies and is participating in the commercialization
program.

     The establishment of a major synthetic fuels industry in the  U.S.  and
the widespread utilization of synfuel products present significant  public
health and safety risks and a great potential for environmental
contamination.  To meet these challenges, the U.S. Environmental Protection
Agency has accelerated and expanded its synthetic fuels environmental
programs and has taken steps to integrate internal agency  planning
activities.  Two policy groups, the Alternate Fuels Group  (AFG)  and the
Priority Energy Project Group (PEPG), have been formed under  the Assistant
Administrator level EPA Energy Policy Committee.  AFG will be responsible
for:  (1) drafting the Agency's regulatory, permitting and research
strategy for synthetic and other alternate fuels; (2) coordinating  the
preparation of environmental guidance for emerging fuels and  technologies
for use by industry planners and permitting officials; and  (3) developing
recommendations and overseeing the preparation and promulgation  of new
environmental standards for these fuels and technologies as appropriate.
The Priority Energy Project Group will plan how EPA should relate  and
respond to the activities of the Energy Mobilization Board.   It  will draft
the Agency's procedures and guidance for working with the  Board  and will
work with the Board, offering information and assistance on EPA  permitting
and the effects of the Board activities on the review process.

     The effort of AFG to date has included the formation  of  five  working
groups that are involved in the preparation of Pollution Control  Guidance
Documents (PCGD's) for major synthetic fuels technologies.  The  PCGD's will
provide guidance on available control technologies  for multimedia  waste
streams.  Early development of environmental guidelines will:   (1) allow

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 their utilization  in  technology  process design;  (2) provide environmental
 impact statement  (EIS)  and  permit  reviewers with  information to ensure that
 dischargers will  be  reasonably controlled  in a cost-effective manner; and
 (3) expedite EIS  and  permit  application review.   These factors should speed
 commercialization  of  emerging synthetic fuels technologies while providing
 environmental protection  for currently known environmental effects.  PCGD's
 for gasification,  direct  and indirect liquefaction, and oil shale
 technology are in  various stages of completion; these efforts, which
 receive inputs from EPA Program  Offices, are being directed by the EPA
 Industrial Environmental  Research Laboratory in Research Triangle Park,
 North Carolina (EPA/IERL-RTP) for the Coal Conversion Technologies; and by
 the EPA Industrial Environmental Research  Laboratory in Cincinnati, Ohio
 (EPA/IERL-Ci) for  the oil shale  technology.  In addition to the preparation
 of PCGD's, EPA/IERL-RTP and EPA/IERL-Ci are currently involved in a number
 of synthetic fuel  environmental  assessment programs involving process
 technology data base  development, control   technology assessment, and
 environmental data acquisition via source  test and evaluation at synfuel
 facilities.

      PCGD's and nearly all other current EPA synfuel-related environmental
 assessment programs primarily focus on the technologies for the production
 of synthetic fuels.   The  study described in this  report, which was
 sponsored by the EPA/IERL-RTP, constitutes the first major effort by EPA to
 identify and examine  environmental concerns that would be associated with
 the projected wide-scale distribution, handling, and end use of synfuel
 products.   A related  program, which is currently in progress and which is
 sponsored  jointly by EPA/IERL-RTP and EPA  Office of Planning and
 Management, will  extend the present study  to an analysis of the tradeoffs
 of various product slates for minimizing environmental  impacts associated
 with  product handling, distribution, and utilization.

 1.2  OBJECTIVE  OF THE SYNFUEL UTILIZATION  STUDY

      Several  synfuel  technologies are under consideration for commercial
 production.   A  wide range of synfuel  products is expected to be produced
 and utilized in  a broad category of end uses (Table 1).

      The  objective of this study was to evaluate a broad range of
 environmental  concerns relating to synfuel  utilization and assign them
 priority  rankings to  aid EPA in  focusing its regulatory and research
 activities.   The  study includes  the entire market infrastructure, which
 will  eventually  comprise synfuel  upgrading; product distribution and
 storage; and  product  consumption.

 1.3  METHODOLOGY

     The study methodology was  based  on  the development of a priority
matrix of  environmental  concerns  and  criteria,  which were evaluated for
each of the  synfuel  process  technologies  and products  indicated in Table 1.
The elements of this  priority matrix  include:

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                                    TABLE  1.    SYNFUEL   MARKET  OVERVIEW
      What Technologies Produce Synfuels?
                       What  Major Products/
                       Byproducts Will They
                       Make?
                        Where Will The Products/
                        Byproducts Be Used?
                            Hhat Are The Relative
                            Potential Exposure Levels
                            to "he Products?
 OIL  SHALE:
Numerous Retor-
ting processes,
Including Tosco,
Paraho, Union,
Occidental
Syncrude upgraded and
refined to yield:

Gasoline
Jet Fuel
Diesel  Fuel
Residuals
 DIRECT COAL LIQUEFACTION:        SRC-11
                                Exxon Donor
                                Sol vent
                                H-Coal
                                                      LPG
                                                      Naphtha
                                                      Fuel  Oil
                      LPG
                      Naphtha
                      Fuel  Oil
                      Solvent
                                                      Naphtha
                                                      Fuel  Oil
                                                      LPG
• Commercial  and military
  transportation, incluo
  ing highway vehicles,
  aircraft, ships
« Utility and industrial
  boilers
• Commercial  and resif
  dentlal heating
l Industrial  lubricants
Low for transport of
crude shale to refinery;
moderate during refining
increased exposure level
when used in transporta-
tion sources and space
heating and end use as
boiler fuel
                         •  Utility and Industrial
                           boilers
                         *  Commercial and residen-
                           tial  heating
                         •  Chemical  feedstocks

                         *  Utility and industrial
                           boilers
                         •  Commercial and resi-
                           dential heating
                         *  Paint thinners

                         «  Utility and industrial
                           boilers
                         «  Commercial and resi-
                           dential heating
                             Low  for  LPG, Naphtha as
                             feedstocks.  Moderate
                             exposure for fuel oils at
                             industrial  sites with
                             exposure for fuel oils
                             at  industrial  sites with
                             exposure increasing when
                             used in  space  heating
INDIRECT COAL LIQUEFACTION:      Fischer-Tropsch
                                H-Gasoline


                                Methanol
                      Gasoline
                      LPG
                      Diesel  Fuel
                      Heavy Fuel Oil
                      Medium Stu Gas
                      SNG
                      Tar Oils3
                      Phenols

                      Gasoline
                                                      Fuel  Grade Methanol
                         • Commercial  and military
                           transportation
                         • Utility  and industrial
                           boilers
                         • Commercial  and resi-
                           dential  heating
                         t Chemical  feedstocks
                         • Agriculture uses

                         t Commercial  and military
                           transportation

                         • Commercial  and military
                           transportation
                         t Chemical  feedstocks
                            Moderate exposure  when  fuels
                            used in transportation  so-
                            urces and boilers.   Low to
                            moderate exposure  is also
                            estimated when products
                            used as chemical  feedstocks
HIGH 8TU COAL GASIFICATION:
                                Numerous  Processes,
                                Including Lurgi,
                                Coed-Cogas, Texaco,
                                Shell-Koppers
                      SNGU
                                                i  Commercial  and  resi-
                                                  dential  heating
                                                     Very  low  -  similar  to
                                                     current distribution of
                                                     natural gas
 MEDIUM BTU COAL GASIFICATION:   Numerous Processes
                      Medium Btu Gas
                      Low Btu Gas
                         • Captive fuel use for
                           industrial heating and
                           chemical feedstocks
                            Very low for captive use;
                            moderate exposure for fuel
                            use
aOnly representative  byproducts are indicated
"Substitute Natural  Gas

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     0
Amount of synthetic fuel product in the market (at any time)
     •    Exposure  created  by  transport,  storage,  and  end  use  of  a
          designated  quantity  of  product

     •    Emission  factors  (air,  water,  land)  related  to  product  transport,
          storage,  and  end  use

     •    Toxic  hazards associated  with  the  products and  their combustion
          products

     •    Cost of pollution controls  that  would  be required  to mitigate  the
          exposure

     •    Regulatory  protection that  would be  offered  by  existing or
          planned environmental regulations.

     Environmental  evaluations of new product  use  emphasize  the element  of
risk associated  with  exposure.  There is  already an  implicit  acceptance  of
the  risk of  conventional  petroleum  and natural  gas utilization.   Therefore,
it seems logical that  any  assessment  of  synfuel  utilization  risk  should  be
relative to  the  existing  use of conventional  fuels.

1.4  INITIAL EXAMINATIONS

     First,  sets of background information were  compiled  that  included data
on those synfuel technologies  considered mature  enough for possible
commercialization by  the  1990s.   These technologies  are coal  gasification
(high-Btu, medium-Btu,  low-Btu),  coal  liquefaction (indirect  and  direct)
and  oil shale  retorting.   Production  rates for the particular  synthetic
fuels were projected  based  on  various production forecasts by  potential
synfuel producers or  government agencies.   Finally,  the environmental
exposures of the utilization systems  were  scoped,  control  options were
briefly considered, and options for EPA  actions  were noted.   The  results of
this initial examination  were  published  under  the  Problem-Oriented Report
Title  "Utilization  of  Synthetic Fuels:  An Environmental  Perspective"  by
Industrial Environmental  Research Laboratory/Research  Triangle Park  (August
1980).

1.5   SYNFUEL  UTILIZATION  PROJECTIONS

1.5.1  Types and Quantities of Synfuel Products/Bv-Products  Entering the
       Market

     Three specific scenarios  were  chosen  to  define  possible synfuel
utilization systems of  the  1990's that would  derive  from  the most likely
buildup rates  for the most  mature synfuel  processes  at the probable
production sites.

     0    A national  goal  scenario  driven  by  federal incentives

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     0    A nominal production or most likely scenario

     •    An accelerated production scenario representing an upper  bound
          for industry buildup.

     Those refined or processed products likely to be produced  from  the
major synfuel plant product streams were evaluated to yield the types  and
quantities of synfuel products and  by-products  entering the market.
Recognizing that plant mix, product split, distribution  systems,  and
end use may vary from scenario to scenario, the differences among the  three
scenarios were specifically identified.

1.5.2  Market Analysis of Synfuel Products/By-Products

     The penetration of synfuel products and by-products  into the existing
marketing system for conventional fuels was analyzed.   For  this purpose, a
survey of the existing marketing system infrastructure  established  the type
and relative quantities of petroleum-based products and  by-products  that are
in commerce today.  This infrastructure served as a baseline system  into
which oil shale and coal-derived synfuel products and by-oroducts were
introduced as they become available.  The existing baseline system  facili-
tated comparison of product quantities, modes of transport, exposures  (by
geographical areas), emissions, toxic characteristics,  and  the  control and
regulatory framework for environmental protection.

     Also a limited set of interviews was held with potential synfuel
product users and  producers to determine their plans for  production  and use
of synfuel products.  Representative producers of each  synfuel  type  (oil
shale, coal gasification, coal liquefaction), personnel  from DOE  energy
technology centers, and representatives of end-users were interviewed.  The
interview results  were incorporated into the market analysis.

     The analysis  included:

     •    Identification of plant types, their likely location, and  timing

     t    Identification of synfuel product/by-product  end  uses

     •    Evaluation of distribution, handling, and storage systems for the
          major product slates

     •    Description of end  use applications and geographical
          distribution, including transportation, utility,  industrial,  and
          commercial/residential sectors.

1.6  ENVIRONMENTAL ANALYSIS AND PRODUCT RANKING

1.6.1   Development of Data Base on Synfuel Product Characteristics

     To develop the data base for analyzing environmental  implications of
synfuel product end uses, the reported  data on  physical  and chemical

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properties and health effects  and  combustion  characteristics  of  synfuel
products (and where available  of analogous  petroleum  and  natural gas
products)  were  reviewed,   the limitations  of the  available data, which
should be clearly understood in comparihg synfuels with conventional  fuels
from an end use  environmental  standpoint, and the  key relevant on-going  and
planned programs which would be expected to generate  some of  the needed
data were identified.

1.6.2  Analysis  of Potential Areas of  Environmental Concern and  Regional
       Implications of Synfuel  Product Utilization

      The potential areas  of environmental  concern in synfuel  utilization
were identified  in the light of the  significance of reported  or  estimated
product characteristics.   The  known  and estimated  environmental
significance of  product  properties were then  related  to the product
utilization scenarios developed previously  and potential  environmental
areas requiring  more immediate attention were highlighted.  In general,  the
environmental analysis was  in  "relative" rather than  "absolute"  terms in
that properties  and use  impacts of synfuel  products were  not  considered  in
themselves but rather were  reviewed  in comparison  with those  for the
petroleum analogs.  Some of the control measures and  regulatory
considerations for the mitigation  of the major environmental  concerns for
various anticipated product uses were  identified.   Six major Federal
environmental statutes which would have bearings on the environmental
concerns and mitigation measures were  briefly reviewed.

1.6.3  Priority  Ranking  of Synfuel Products

     A priority  ranking  system was developed  and used to  rank synfuel
products from the standpoint of end  use environmental concerns.  The  system
takes into account;

     •    Environmentally  significant  characteristics of  synfuel products
          relative to those of petroleum analogs,  based on  consideraions of
          exposure potential,  combustive and  evaporative  emissions, toxic
          hazards, cost  of control and the  extent  of  regulatory  protections
          under  key existing environmental  legislations.  Products  for
          which  the environmental  risks and control needs are greater and
          for which less protections can be anticipated under existing
          regulations were  given a higher  ranking.

     •    The estimated  quantity of products  used, both in  absolute terms
          and as percentages of the  total  (synfuel and petroleum) used
          nationwide and in the regions of  maximum use.   The  greater  the
          amount of the  product used and the  percentages  of usage,  the
          greater is the potential of  presenting environmental hazards and
          hence  a higher positive  ranking.

     •    Considerable scientific  and  engineering  judgement.   Because of
          the lack of a  solid  data base, heavy reliance was placed  on the
          professional judgement of experts most familiar with the  domestic

-------
          energy supply and demand picture, synfuel production/refining
          technologies, expected environmental characteristics of synfuel
          products, applicable controls and regulatory needs.

     Based on the above considerations, synfuel products were ranked into
threee groups:  those eliciting the most concern (ranked as "1"), those
indicating the ''modest" concern (ranked as "2") and those generating a
"low" level of concern at the present time (ranked as "3").

1.7  Background Information

     A substantial  body of information was used to derive the analyses and
conclusions contained in this report.  This background information is
contained in the appendices:

     Appendix A.   Interviews with Potential  Suppliers and Users of Synfuel
                   Products

     Appendix B.   Commercial Coal Liquefaction and Gasification Projects

     Appendix C.   Cooperative Agreements and Feasibility Study Grants for
                   Synfuels

     Appendix D.   Baseline Petroleum and Natural  Gas System
     Appendix E.
Physical  and Chemical  Characterization of Synfuel
Products
     Appendix F.   Combustion Products and Use Properties of Synthetic
                   Fuels

     Appendix G.   Health Effects Test Results for Synthetic Fuels

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                                  SECTION 2

               SYNFUEL  PRODUCTION OVER  THE NEXT  TWENTY  YEARS

2.1  SYNFUEL  PRODUCTION SCENARIOS

     To obtain an  environmental  perspective of synfuels utilization,  three
scenarios of  synfuel   industry  buildup  rates  to  the  year 2000 were devel-
oped:  (1) The national  goals  scenario  driven by federal  incentives;  (2)  a
nominal production  or  most  likely scenario; and  (3)  an  accelerated pro-
duction scenario  representing  an  upper  bound  for industry buildup.  Based
on these  scenarios,  the product market  for synfuels  and their possible
environmental  impacts  are  discussed  in  Sections  3,  4,  and 5, respectively.

 2.1.1  Perspectives for Synfuel  Production Scenarios

2.1.1.1   History  and Status of  Synfuel  Technologies

     The  term  synfuel   has  become synonymous  with any  combustible
nonpetroleum  fuel  source,  including  coal-  and shale-derived  fuels and
feedstocks as well  as  those derived  from agricultural  products such as
grain, wood,  and  cellulose.  However,  industry has  become increasingly more
interested in those  synfuel  technologies with products  that  are easily sub-
stituted  for  petroleum and  natural  gas--coal- and shale-derived products.
The following discussion is limited  to  these  products.

     Shale Oil Technology  - History  and Status

     The  use  of oil  shale  as a  fuel  resource  predates  the large-scale use
of conventional petroleum  by several  centuries.   In  the past 150 years,
commercial industries  have  existed in  Scotland,  France, Germany, Spain,
South Africa, Australia, and the  United States.   The U.S. oil shale indus-
try was an important part  of the  nation's  energy economy before  the  first
oil well  was  drilled.   At  least  50 commercial plants for extraction of fuel
oil from  eastern  oil shales existed  before 1859; but the industry dis-
appeared  shortly  after commercial  petroleum production  began.  However,  the
Synthetic Liquid  Fuels  Act  was  passed  just before the  end of Second World
War, and  soon after  its passage  the  United States Bureau of  Mines (USBM)
began a comprehensive  R&D  program that  has continued to the  present day,
although  oversight  authority has  been  transferred to the Department of
Energy.   One of USBM's  most  significant early acts was  to establish a
research  facility  at Anvil  Points on  the Naval  Oil  Shale Reserve near
Rifle,  Colorado.   In 1973,  the  facility was leased  by  Development
Engineering Inc.  (DEI), which operated  it  for five years. During this time
the Paraho retorting process was  developed.   DEI used  the facility to
produce over  100,000  barrels of  shale  oil for refining studies.


                                     8

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     As a direct substitute for large volumes  of  liquid  fuels,  oil  shale
technology is perhaps closest to commercialization  in  the  U.S.   Several
consortia and companies have been engaged  in the  development  of shale oil
technology for some time and have established  shale  oil  projects  located in
prime shale areas of Colorado and Utah  (Table  2).

     Many technologies for the extraction  of kerogen  (a  waxy  organic
material) from shale are being developed and tested.   Most  involve  heating
shale to about 480°C and pyrolyzing the kerogen into  a viscous  liquid
called shale oil.  They differ in the manner in which  this  heating  process
is accomplished:  surface retorting, in situ retorting,  or  modified  in  situ
retorting.

     In surface retorting, oil shale is mined, crushed to  the  proper  size,
and then fed to a large kiln for heating.  Several  surface  retorting  pro-
cesses are under development that differ primarily  in  the  heating method
used.  Internal-combustion retorting heats shale  by  the  circulation  of  hot
gases that are produced inside the  retort  by the  combustion of  residual
carbons in the shale.  Gas-cycle retorts used  by  Union Oil  heat the  shale
by circulating externally heated fluids; no combustion occurs  inside  the
retort.  In solid-heat-carrier retorting,  hot  solids  are heated outside  the
retort and cycled through the shale.  For  example,  the TOSCO  process  uses
ceramic balls as the heat carrier.

     In situ retorting pyrolyzes oil shale while  it  is still  in the  ground.
The shale bed is ignited and sustained by  injection  wells,  the  shale  is
pyrolyzed, and the oil produced is  pumped  out  of  the  retort volume  through
a production well.   The spent shale remains in place.  For  successful  in
situ retorting, the shale bed must  be made permeable  to  the flow  of  heat
and product oil; various techniques of bed leaching  or fracturing are
employed.  The difficulty of creating a permeable shale  bed has  led  to  the
development of modified in situ processes.  Vertical  modified  in  situ
(VMIS) retorting removes a portion  of the  shale from  the bottom of  the
deposit and fractures the remaining shale  to create  a  chimney  of  shale
rubble.  The shale in this chimney  is retorted from  top  to  bottom.
Occidental Oil Company has been testing VMIS retorting on  shales  at  Logan
Wash and Piceance Creek Basin in Colorado.  Horizontal modified in  situ
retorting lifts the overburden in some cases,  and fractures the shale seam
to retort the shale from side to side.  Geokinetics,  Inc.  is  developing
this technique in Utah.

     The technology for surface retorting  is more advanced  than that  for in
situ retorting, because process variables  are  easier to  monitor and  control
in above-ground retorts than in underground retorts.   However,  large-scale
commercial surface retorting requires large-scale oil  shale mining,  haul-
ing, and crushing; and large-scale  disposal of spent shale.  It is  also
limited to that portion of the shale resources that  is mineable.   In  situ
retorting without mining is applicable  to  a greater variety of shale beds,
and eliminates the requirements for handling,  crushing,  and spent shale
disposal.  However, attempts to demonstrate this  technology have identified

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                                              TABLE  2.    U.S.  OIL  SHALE  PROJECTS
Project
Chevron
Colony (TOSCO, EXXON C)
Equity Oil
GeoMnetlcs, Inc.
Location
Plceance Basin
Parachute Creek
Plceance Creek
Ulnta County
Technology
Undecided
Surface retorting
Solution Injection, modified
In-sltu
Horizontal modified In-sltu
Production
Capacity Goal
(bbl/day)
50,000
47,000
-
7-13
2 ,000-5 ,000
Status
Technical assessment phase.
Construction of commercial mod-
ules scheduled for 1980.
Steam-Injection feasibility
Several small retorts successfully
burned; work on larger retorts In
Getty Oil


Mobil

Occidental Oil



Occidental Oil  - Tenneco
Paraho  (Development Engineering,
Inc.)

Rio Blanco (Gulf, Amoco)
Superior Oil
 TOSCO-Sand Mash
 Union Oil
 White  River (Sohlo, Sunoco,
 Phillips)
     Plceance Basin


     Plceance Basin

     Logan Wash
      Tract  C-b,
      Plceance Basin
      Anvil Points
      Tract  C-a,
      Plceance Basin
      Plceance Creek



      Ulnta Basin


      Parachute  Creek
Surface thermal  extraction


Undecided

Vertical modified In-sltu



Vertical modified In-sltu



Surface retorting
Vertical modified In-sltu,
surface retorting
Multlmlneral recovery, sur-
face retorting
Modified In-situ, surface
retorting

Surface retorting
      Tracts  U-a  and U-b,   Modified 
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many development problems.  Modified  in  situ  processes  are  a compromise;
they require some mining and handling, but  offer more process control  and
easier development.

     The crude shale oil produced  by  retorting  will  be  upgraded  by further
processing.  This upgraded shale,  or  syncrude,  will  be  used  as a refinery
feedstock or boiler fuel.  It  is well  suited  for refining  into middle
distillate fuels.  If hydrocrack ing is chosen for  the refining process,  the
yield and range of products is particularly desirable:   motor gasoline   17
percent; jet fuel   20 percent; diesel fuel   54 percent; and residuals    9
percent.

     Several oil shale projects will  begin  operation during  the  1980s.  The
technologies, which are proprietary in many cases,  appear to be  suffici-
ently mature to move ahead to  commercialization.   Several  retorts have been
successfully operated by Geokinetics,  Inc., Occidental  Oil,  Paraho,  Union,
and TOSCO.  Colony, Union Oil, and Occidental Oil  have  announced plans to
begin commercial development in 1980.  All  technologies  have been
demonstrated at pilot scale or larger.

     Coal Gasification - History and  Status

     Coal gasification processes have been  used in  Europe and America  since
the early nineteenth century to supply the  fuel needed  to light  the  streets
in major cities.  This fuel, known as  town  gas or,  sometimes, as water
gas, was made by reacting coal with steam.  However, the process was expen-
sive and troublesome to maintain,  efficiencies  were  low, and operation was
inevitably dirty.  Despite its drawbacks, gas made  from  coal  played  a  major
role in the U.S. well into the 1900s,  particularly  in supplying  markets
that were far from natural gas fields  but near  coal  deposits.  As late as
1932, the residential gas market in the  eastern U.S. was supplied mainly
with synthetic gas made from coal.  But  when  long-distance  pipelines were
constructed during World War II, cheaper natural gas became  more convenient
nationwide and the use of coa1 gas in  the U.S.  declined.

     Most coal gasifiers react coal,  steam, and oxygen  to  produce a  gas
containing carbon monoxide, carbon dioxide, and hydrogen.   When  air  is used
as the oxygen source, the product  gas contains  up  to 50  percent  nitrogen
and is referred to as low-Btu  gas  because its heat  of combustion is  only 80
to 150 Btu/standard cubic feet (scf).  Synthesis gas or  medium-Btu gas
ranges from 300 to 500 Btu/scf.

     Low-Btu gas is used as a  fuel gas near its point of generation  because
its low heating value makes it uneconomical to  distribute  over long  dis-
tances.  Medium-Btu gas can be used as a fuel gas  and transported economi-
cally over distances of up to  200  miles.  It  can also be used as a chemical
feedstock for the production of methanol  or gasoline, or can be  converted
catalytically to substitute natural gas  (SNG),  having a  heating  value  of
about 1,000 Btu/scf.  Medium-Btu gasification  is an  integral part of all
indirect liquefaction technologies.
                                      11

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     The many  coal  gasification  technologies  differ  in  design  and
operation, depending  upon  the  type  of  coal  used  and  the  product  desired.
High- and medium-Btu  gasification  technologies  using noncaking U.S.  western
coals are relatively  well  developed.   Severe  operational  problems  are
encountered with  commercially  available  gasifiers  in processing  caking
coal, such as  that  found  in  the  eastern  U.S.  Several  gasification  tech-
nologies for high-  and  medium-Btu  gases  are under  development  (Table 3).
Many additional processes  are  being tested, but  are  at  less  advanced stages
of development  (Table 4).

     A fixed-bed  gasifier, such  as  the Lurgi, feeds  coal  to  the  top of  the
gasifier.  The  descending  coal  is  successively  dried,  devolatilized, and
gasified in contact with  gases rising  from  the  bottom.   Steam  and  oxygen
are introduced  at the bottom of  the gasifier, and  solid  ash  is removed
through  an ash  lock.  In  some  gasifiers, such as the British Gas Company
(BGC) Lurgi, the  temperature at  the bottom  of the  bed  is  sufficient to  melt
the ash, allowing its removal  as molten  slag.  The slagging  feature pro-
vides a  distinct  advantage in  contending with the  caking  characteristics  of
eastern  U.S. coals.

     Lurgi's high-pressure operation,  in conjunction with relatively low
gasification temperatures,  favors  the  formation  of significant quantities
of methane in  the gasifier,  and  enhances the  heating value of  the  product.
These conditions  also favor  production of by-products such as  tars  and
impurities like phenols,  organic nitrogen compounds, and  sulfur  compounds.

     In  fluid-bed gasifiers  currently  under development,  high-velocity
gases pass up  through the  bed  to fluidize the coal,  providing  excellent
mixing and temperature  uniformity  throughout  the reactor.  Operability  with
eastern  U.S. caking coals, as  well  as  low tar production  and tolerance  to
upsets in fuel  rates, have been  demonstrated  at  the  pilot scale  for both
the Westinghouse  and  U-Gas gasifiers.

     The Texaco and Koppers-Totzek  gasifiers  are representative  of
entrained-bed  technology  in  which  the  solid particles  are concurrently
entrained in the  gaseous  flow.  Flame  temperatures range  from  1370 to
1925°C,  resulting in  melting of  the coal ash  with  minimum production of
impurities.  Entrained-flow  gasifiers, which  can operate  with  caking coals,
may be favored  for  the  production  of synthesis  gas for indirect  liquefac-
tion.   However, compared  to  fluid-bed  gasifiers, they  have very  low carbon
holdup capability in  the  reactor and,  therefore, have limited  safeguard
against  possible  formation of  an explosive  mixture in  the reactor  in case
of coal  feed interruption.

     There has  been extensive  commercial experience  in  the U.S.  with low-
Btu coal  gasification technologies  operating  near  atmospheric  pressure.
However, these  applications  have been  limited to small-scale captive
applications for  providing industrial  process heat and  space heating.   For
example, the Wellman-Galusha gasifier  designed  for atmospheric pressure
operation was  used  extensively by  industry  years before  pipeline-supplied
natural  gas was readily available  at comparatively lower  cost.  Pressurized


                                      12

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                              TABLE  3.   COAL  GASIFIERS  FOR HIGH-,  MEDIUM-, AND  LOW-BTU  GAS
Process
lurgl Dry Ash
British Gas
Company (BGC)
Lurgl
Texaco
U-Gas Institute
of Gas Tech-
nology (IGT)
Westlnghouse
Shell Koppers
(Coppers- Totiek
Process Type
Pressurized fixed
bed, dry bottom
Pressurized Fixed
bed slagging bottom
Pressurized single
stage entrained,
slurry feed
Pressurized fluid
bed, ash
agglomerating
Pressurized single
stage fluid bed,
ash agglomerating
Pressurized entrained,
dry feed
Atmospheric entrained,
dry feed
Potential
Products
Substitute Natural Gas
(SNG, also known as High*
Btu Gas). Med1um-Btu
Fuel* Gas, Low-Btu Fuel
Gas
SNG, Medlum-Btu Fuel
Gas. Low-Btu Fuel Gas
SNG, Mod1um-8tu
Synthesis Gas, Low-
Btu Fuel Gas
SNG, Medlum.Btu Fuel
Gas, low.Btu Fuel
Gas
SNG. Mcdlum-Btu Fuel
Gas, Low-Btu Fuel
Gas
Medtum.Btb
Synthesis Gas.
Low-Btu Fuel Gas
Med1um*Btu
Synthesis Gas,
Low- Btu Fuel Gas
Host Suitable
Products
SNG. Medlum-fltu Fuel
Gas. Low-Btu Fuel Gas
SNG, Medlum-Btu Fuel
Gas, Low-Btu Fuel
Gas
MedlunuBtu Synthesis6
Gas
Medium- Btu Fuel Gas
SNG. Medlum.Btu Fuel
Gas
Hed1um~8tu
Synthesis Gas
Hedlum.Btu
Synthesis Gas
Status
40 years of contnerclal development and 14
commercial plants located In Australia,
Germany, UK. India, Pakistan, South Africa,
Korea. Average module size 800 tons/day
(2000 BOE)C
790 tons/day (of coal) (2000 BOE) pilot
plant tested In Uestfleld, Scotland
160 ton/day (400 BOE) plant operating In
West Germany
14000 tons/day of coal plant (35000 BOE)
producing Hedlum.Btu Fuel Gas, under
design for construction In Tennessee
15 ton/day (40 BOE) process development
unit, under testing at Waltz Mill, Pa.
150 ton/day (400 BOE) pilot plant In oper-
ation In W. Germany. 1,000 ton/day
scheduled In 1983/1984.
1.000 ton/day (2500 BOE) plant In opera-
tion In South Africa for the production
of ammonia
U>
            a  Medlum-fltu Gas with significant concentration of methane Is more suitable for use as fuel, and therefore Identified as MedlunvBtu Fuel  Gas.
            b  Hedlum-Btu Gas with low concentration of methane Is more suitable for chemical synthesis,ard therefore Identified as Hedlum-Btu Synthesis
               Gas
            c  BOE - Barrels per day of oil equivalent

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TABLE  4.   STATUS OF OTHER COAL  GASIFICATION PROCESSES
DEMONSTRATION PLANTS
HYGAS
COED-COGAS
U-GAS
SCALE
(tons/day
coal feed)
7340
2210
3160
STATUS

Conceptual Design
Detailed Design
Detailed D<
"sign
 PILOT PLANTS/PDUs
     BELL HIGH MASS FLUX       6
     BIGAS                   120
     COMBUSTION ENGINEERING    5
     DOW                      24
     EXXON CATALYTIC         100
     GEGAS                    24
     HYDRANE                   4
     MOLTEN SALT              24
     MOUNTAIN FUEL            12
     SYNTHANE                 72
     TRI-GAS                   1
Operational
Operational
Operational
Under Construction
Proposed
Operational
Proposed
Operational
Proposed
Mothbalied
Operational
 Conceptual  design incorporates all  important  details  of major unit
 areas in the plant.  Material balances are provided around all major
 unit areas.   (Unit area is a section of the  plant  consisting of
 several  components integrated to perform a single  transformation  on
 the product  stream.  Examples are gasification,  raw gas cooling,  gas
 cleanup, or  methanation.)
  All equipment and detailed pipeline diagrams  are  prepared  as part of
 detailed design.   In addition, detailed material balances  are  prepared
 for each piece of equipment.
 cThe plant is either operating or has operated successfully in the
 past.
                                     14

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gasification processes capable of yielding  high-Btu  gas  for  pipelines  and
medium-Btu gas for chemical feedstocks are  less well  developed,  with  the
exception of the Lurgi fixed-bed process.   The Lurgi  process is  based  on 40
years of commercial development at  14 commercial  plants  that are located in
Australia, Germany, U.K.,  Korea, India,  Pakistan,  and South  Africa.   A
great deal of interest in  the Lurgi technology is  emerging  in  the U.S.,  and
plans for SNG production have been  announced  by several  pipeline and  gas
utility companies.  Several projects using  the Texaco process  for captive
applications (chemical feedstocks and onsite  power generation) are in  the
planning and design stage  with at least  one project  (Tennessee-Eastman)
scheduled for construction in 1980.

     Direct and Indirect Coal Liquefaction  -  History  and  Status

     Coal liquefaction processes have been  developed  more recently than
coal gasification processes.  Before World  War II, a  number  of coal  lique-
faction plants were built  in Germany, in anticipation that  oil might  not be
available.  Complex, bulky, and expensive as  they  were,  these  processes
helped to fuel the German  war machine.   They  produced up  to  100,000  barrels
of transportation fuels a  day at the height of the war.   Small-scale  feasi-
bility studies of German technology were conducted in the U.S. during  the
1930s, but the effort was  largely ignored because  of  the  discovery of
cheaper east Texas oil in  1930.  In 1940, U.S. interest  revived  somewhat,
and Congress passed the Synthetic Liquid Fuels Act.   The  Act provided  $85
million in research funds, and two  experimental plants were  built and
operated until  the program ended in 1955.   Then, just as  in  1930,  another
large oil discovery, this  time in the Middle  East, killed interest in  coal
liquids.  However, in 1950, South Africa, realizing  its  total  dependence on
imported oil for liquid fuels, initiated plans for a  10,000-barrel-per-day
plant based on German liquefaction  technology.  This  plant,  SASOL I,  has
been operational since 1956.  Today this plant and its sister  plant,  SASOL
II, are the only large-scale commercial  facilities in the world  producing
liquid fuel from coal.

     There are two basic types of liquefaction processes — direct and
indirect.  For direct liquefaction, coal, hydrogen,  and  a coal-derived oil
are mixed at high temperature and pressure.   Under these  conditions  the
coal decomposes and the fragments react  with  hydrogen to  form  additional
derived oil, which is separated from the unreacted solids and  further
refined to produce usable  liquid fuels.  Indirect  liquefaction pro-
cesses react the coal with oxygen and steam in a  gasifier to produce  a
synthesis gas composed mainly of carbon  monoxide,  carbon  dioxide, and
hydrogen.  After the carbon dioxide and  other impurities  are removed  from
the gas, the carbon monoxide and hydrogen are chemically  combined in  a
catalytic reactor to produce liquid products  for  use  as  chemical feedstocks
or liquid fuels.

     There are three major direct coal liquefaction  processes  currently
under development:  SRC, Exxon Donor Solvent  (EDS),  and  H-Coal  (Table 5).
These processes differ mainly in the way the  hydrogen is made  to react with
coal fragments to produce  the unrefined  coal  liquids.  In the SRC process,


                                     15

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                                   TABLE  5.   MAJOR  COAL  LIQUEFACTION PROCESSES
           PROCESS
        PROCESS TYPE
         PRODUCTS
           STATUS
Solvent Refined Coal,
SRC II (Gulf Oil)
H-Coal
(Hydrocarbon Research,
Inc.)
Exxon Donor Solvent, EDS
(Exxon Research and
Engineering Company)
Flscher-Tropsch
(M.H. Kellogg/Lurgi)
 Mobil-M
Direct liquefaction by sol-
vent extraction:  coal dis-
solved 1n solvent, slurry
recycled, catalytic hydro-
genatlon
Direct liquefaction by
catalytic hydrogenation,
ebullated catalyst bed
Direct liquefaction by
extraction and catalytic
hydrogenation of recycled
donor solvent
 Indirect liquefaction,
 liquefaction of synthesis
 gas in a fluid bed
 catalytic  converter
 Indirect liquefaction,
 liquefaction of synthesis
 gas in fixed bed using
 molecular size-specific
 zeolite catalyst
LPG
Naphtha
Fuel Oil
SNG
Naphtha
Fuel Oil
Propane
Butane
Naphtha
Fuel Oil
Gasoline
LPG
Diesel Fuel
Heavy Fuel 011
Medium Btu Gas
SNG
Gasoline
LPG
Pilot Plant under operation.
6700 ton/day of coal (20,000
barrels/day of oil equivalent)
demonstration module under
design and schedule for oper-
ation in 1984-1985

600 ton/day (1400 barrels/
day of oil equivalent)
pilot plant under construc-
tion, testing will begin
1n 1980.  Plant 1s located
at Catlettsburg, Kentucky

250 ton/day (500 barrels/
day of oil equivalent)
pilot plant under construc-
tion, testing will begin in
1980.  Plant 1s located at
Baytown, Texas

SASOL I, 800 tons/day, pro-
ducing over 10,000 bbl day of
liquids in commercial  produc-
tion since 1956.  SASOL II,
40,000 tons/day, producing
over 50,000 bbl day of liq-
uids has been completed and
will begin start-up in 1980.
SASOL III with approximately
the same capacity as SASOL II
is currently being plan-
ned.

Commercial scale plant to
produce 12,500 barrels of
gasoline using reformed
natural gas 1s planned for
New Zealand in 1984-1985

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the coal feed and hydrogen are mixed with  a  process  recycle  stream that
contains unreacted coal ash as well as  coal-derived  oil.   The  iron pyrite
in the unreacted ash catalyzes the  reaction  between  the  coal  fragments and
hydrogen.  In the EDS process, the  coal  feed  and  hydrogen  are  mixed with a
specially hydrogenated coal oil called  the donor  solvent.  The hydrogen
added to the coal fragments is provided  by the  solvent and the hydrogen
gas mixed in the reactor.  The donor solvent  is made  by  catalytically
hydrogenating coal-derived oil using conventional  petroleum  refinery
hydrotreating technology.  In the H-Coal process,  the  unreacted coal  and
hydrogen are mixed with coal-derived oil and  an added  solid  catalyst in a
special  reactor  referred to as an ebullated  bed.

     After the gases and distillable liquid  products  have  been separated
from the reactor effluent, the remaining "bottoms" material  is processed.
This material contains significant  quantities of  heavy hydrocarbons that
must be  efficiently utilized to enhance  process economics.   The principal
bottoms  processing step under consideration  for the  EDS  process is
FLEXICOKING, which consists of thermal  cracking of the bottoms to produce
additional  liquids and coke.   The coke  is  subsequently gasified to produce
plant fuel  gas or hydrogen for the  liquefaction step.  Bottoms processing
for the  SRC and H-Coal processes probably  will  be  partial  oxidation (i.e.,
gasification) to produce hydrogen for the  liquefaction step.

     There are two major indirect coal  liquefaction  processes:   Fischer-
Tropsch, which is commercial  now in South  Africa;  and  Mobil-M, which is
expected to be commercial in 1983-84.   In  the Fischer-Tropsch  process, the
purified synthesis gas from the gasifier is  reacted  over  an  iron catalyst
to produce a broad range of products extending  from  lightweight gases to
heavy fuel  oil.  This broad product distribution  is  generally  considered to
be a disadvantage where large yields of  gasoline  are  desired.   Improved
catalysts are currently being developed  at the  bench  scale to  maximize the
yield of gasoline-range hydrocarbons.   In  the Mobil-M  process, the syn-
thesis gas is first converted to methanol  using commercially available
technology, and then the methanol is catalytically converted to high-octane
gasoline over a molecular-size-specific  zeolite catalyst.

     Production of methanol from medium-Btu  gas,  which essentially consists
of CO and hL, could be categorized  as an indirect  liquefaction process;
however, no new  process development is  necessary  for  this  step.  Currently
methanol is made from CO and HL produced by  reforming  natural  gas.

     Indirect coal liquefaction is  successfully operating  on a commercial
scale at the SASOL I plant in South Africa using  the  Fischer-Tropsch tech-
nology.  The SASOL I plant produces gasoline, middle  distillates (jet fuel,
diesel oil), and heavy oil.  SASOL  II,  producing  50,000  barrels per day of
coal-derived liquids, has been completed and  will  begin  operation later in
1980.  Active interest in this technology  has developed  and  plans to
license  and construct similar plants  in  the  U.S.  are  progressing.  There is
strong interest  in the Mobil-M gasoline  indirect  process because of its
                                      17

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attractive  high-octane  gasoline  yield.   A commercial-scale plant  producing
12,500 barrels  per  day  of  gasoline  is  planned  for operation  in New Zealand
by 1985.

     Direct  coal  liquefaction  technologies are in various  stages  of
development.  SRC  I  and  II  processes  have been tested  at the pilot-plant
level and are entering  into the  demonstration-plant  stage.  The SRC I
process produces  primarily  a  solid  product with a small  amount of useful
liquid product; whereas  the SRC  II  process produces  primarily liquid
products.

     Large  pilot  plants  are currently  under construction for testing of the
H-Coal and  EDS  processes.   These plants  are located  at  Catlettsburg,
Kentucky and Baytown, Texas,  respectively.

     In addition  to  these major  coal  liquefaction technologies, several
other processes,  including  the DOW  process, Riser Cracking,  Synthoil,  and
the Zinc Halide process, have  received attention. All  have  been  tested in
small-scale  units.

2.1.1.2  Incentives  for  Synfuel  Development

     The primary  incentive  for synfuel development is  the  imbalance
between domestic  supply  and demand  for petroleum liquids and natural gas.
The long-term decline in domestic oil  production coupled with increased
demand has  resulted  in  a level of oil  imports  of 9 million barrels per day
(MMBPD), or  about  50 pecrcent  of U.S.  consumption.   The  proven domestic
reserves of  natural  gas  are also declining and this  demand is now being met
with increasingly  higher priced  supplies.

     The U.S. will  spend almost  $90 billion in 1980  for  foreign oil.  This
high import  level  also  reduces jobs and  our ability  to maintain our eco-
nomic and national  security.   A  recent study (Reference  1) conducted by the
Institute of Gas  Technology concluded  that the actual  benefit to  the nation
from reducing oil  imports  is  $75.00 per  barrel, even  though  the current
cost of oil  is  only  $37.00.   The former  figure takes  into  account external
benefits, such  as  the effects  on inflation, employment,  and  national secur-
ity.   These  are the  considerations, along with the uncertainty inherent in
the import  supplies, that  now provide  the impetus for  federal support  of
synfuel  development.  Recent federal action creating the  Synthetic  Fuel
Corporation  (SFC)  is aimed  at  alleviating some of the  factors that
previously  have discouraged development.

2.1.1.3  Nature of  Synfuel  Industry Development

     The development of a  synfuel industry will  be influenced by  certain
characteristics of  the exising production and  marketing  infrastructure for
oil  and gas products.   Interviews with potential  synfuel producers and
users (see Appendix  A)  indicate  that the  following considerations are
significant:
                                      18

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     •  The development of the synfuel liquids industry will be dominated
        by the oil  companies.   Those technologies that tend to utilize
        existing capital  stock (refineries and distribution systems) will
        be favored   that is,  syncrude treated and upgraded for use in
        existing refineries.

     t  Those technologies that produce products that more closely conform
        to current consumption patterns and end use devices will be favored
        for early development.

     t  Certain captive markets, for example, chemical feedstocks, may
        present a special incentive for certain synfuel  development
        (medium-Btu gas)  to ensure supplies for production processes.

     There are several  impediments, however, to the establishment of a
viable synfuel industry by the early 1990s.  The most important are:


     •   Capital Requirements.  Capital requirements are estimated to range
        from $30 to $45 thousand per daily barrel of equivalent oil from
        coal.  Thus a 100,000  barrel per day facility (equivalent in size
        to a medium-sized oil  refinery) would cost $3 to $4.5 billion.
        This cost is 6 times the cost of an equivalent oil refinery.  This
        exceeds the financial  capabilities of all but a handful of corpora-
        tions, and such investments are likely *o re' lire preemption of all
        other corporate objectives.

     •  Return on Investment.   Based on current world oil prices, synthetic
        fuels could not be produced profitably.  Future profitability is
        uncertain and depends  on escalating plant construction cost, future
        world oil prices, and  future raw materials costs.  For example,
        from 1962 to 1978 coal costs in constant dollars have increased
        faster than oil costs.

     •  Infrastructure.  The expected synfuel  industry  build-up  will
        demand a coordinated expansion of the entire supporting infra-
        structure that is necessary for energy product manufacture,
        distribution, and use.  Water, power and transportation networks
        will have to be expanded or, in remote areas, completely con-
        structed.  Community development and labor force expansion will
        require  similar effort.  All of this will put tredmendous  financial
        demands on the public  and private sectors.

     0  Permitting.  Permitting has been a lengthy and uncertain activity.
        In addition to the permitting procedure's complexity, at times  it
        is necessary to traverse conflicting unmodified  state, local, and
        federal  regulations.  Several energy projects have been aborted
        because  of permitting complexities.  Facilities  as  large and  com-
        plex as commercial-scale synthetic fuel  plants will require  four  to
        five years to construct.  Historically,  for many major energy
        facilities the severe delays caused by permitting and  licensing
                                      19

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        problems have been  longer  than  the  time  required  for  engineering
        and construction.   Delays  in  these  highly  capital  intensive
        projects could mean  large  overruns  in  project  costs and  interest
        penalties.  As discussed above,  continually  changing  patterns  of
        environmental and other  regulatory  requirements have  made  potential
        investors  reluctant  to commit  large capital  resources to  unproven
        technologies without  assurances  that  regulatory changes  will not
        adversely  affect the  economic  viability  of the plant  after the
        projects have begun.

     •  Technology Risks.   Although available  technology  can  reduce
        engineering and operational risks,  such  risks  are not completely
        eliminated.  The coal and  shale  facilities will be first-of-a-kind
        plants.  Some of them will be  based on,  or be  a combination  of,
        processes  practiced  elsewhere,  but  not in  the  United  States.   With
        a few  notable exceptions,  plants with  the  specific configuration
        best suited to the  American market  have  not  been  built anywhere.

     •  Uncertainties about  Government  Action.   Industry  also perceives a
        great  deal of uncertainty  in  how government  views synthetic  fuels.
        There  is also hesitancy  to be  the first  to build  a large  plant.
        First  plants tend to  have  bigger cost  overruns, face  greater tech-
        nological  risk and  design  changes,  and may have shorter  economic
        lives  than subsequent plants.

     Recognizing these impediments, federal  action has directed  the
creation of the Synthetic Fuels  Corporation with a multibillion  dollar
budget to encourage the synfuel  industry by providing  incentives  such  as
price support  for  products,  loan guarantees,  direct  loans, and government
ownership of plants.

2.1.2  Synfuel Industry Build-up Scenarios

     Three scenarios or projections of  synfuel  industry build-up  rates to
the year 2000  have been developed  to  illustrate  the  potential range  of
synfuel  product utilization:

     •  A national goal scenario driven  by  federal incentives

     •  A nominal, or most  likely, production  scenario

     •  An accelerated production  scenario  representing an upper bound for
        industry build-up.

2.1.2.1   National  Goals Scenario - Scenario I

     The specific  national  synfuel goals are:
                                      20

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     •  Coal Liquids.  To stimulate and accelerate the construction  and
        operation of the first few plants to provide sufficient data  on  the
        competing commercial coal liquefaction processes  so that  industry,
        with its own investment, stimulated by government  incentives,  if
        required, will  build plants with sufficient energy capacity  to
        provide up to 1 MMBPD of liquid fuels by the year  1992.

     •  Shale Oil.  To stimulate shale oil  production at  the  rate of  0.4
        MMBPD by 1990.

     t  High-Btu Gas.  To develop and implement a program  that enables the
        U.S., by 1992,  to produce significant quantities  of pipeline
        quality gas (0.5 MMBPD oil  equivalent) from commercial HBG plants
        in an environmentally acceptable manner.   This is  facilitated  by
        the short-range goal of having two or three commercial HBG plants
        in operation by the mid-1980s.

     t  Low-/Medium-Btu Gas.  To stimulate an initial near-term commercial
        capability for several medium-Btu commercial  plants for the mul-
        tiple applications of low-Btu gas in each of the  prime industry
        markets.  Once a capability has been established,  capacity will  be
        accelerated to achieve at least 0.29 MMBPD oil  equivalent by  1992.
        Of this total,  up to 0.04 MMBPD oil  equivalent will be provided
        from 40 to 50 low-Btu facilities and up to 0.25 MMBPD oil equiva-
        lent from 25 to 30 medium-Btu plants.  The medium-Btu gas produc-
        tion goal includes the amount that is likely to be used for the
        production of methanol--a-state-of-the-art technology step.

     The key assumptions underlying achievement of these  goals are:
federal  funds provided are sufficient to reduce investment risk by the
synfuel  industry through 1992; and other requirements for  industry
development are satisfied, that is, environmental  permits, material,
equipment, and labor.  A likely build-up rate profile for  the synfuel
industries under this scenario is shown in Figure 1.
    Figure 1.   Synfuel  Industry  Cuild-up  for the National Goal  Scenario
     The rationale for the curves in Figure 1 is that  after  the
construction of a given production capacity based on the  best  available
technology with federal government incentives, a period of operational
                                     21

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experience  gathering  will  follow in  which synfuel  economics and technical
and environmental  performan-    '11  be  assessed.   When  this  assessment  con-
cludes  that the  investment       s  worth taking, further commercial  plants
will follow.   This  type  of      .ry  production  profile occurred with the
federal  support  of the  syntfr  i    rubber industry during World War II.

2.1.2.2  Nominal  Production  Scenario - Scenario II

     Recent studies of  the technical  capability of the U.S. to meet  the
synfuel  national  goal conclude  that  there are  significant  concerns
regarding  achieving this goal  (Ref>/ence 2,3,4,5).  These  concerns include:

     •   Availability  of  Skilled Manpower.   It  is expected  that the supply
         of  engineers  and construction  labor will be severely taxed to  meet
         the synfuel  production  goal  set forth  in Scenario  I.

     •   Availability  of  Critical  Equipment.  Certain critical equipment
         such  as  compressors,  heat exchangers,  and pressure  vessels are
         expected  to be  in  short supply unless  corrective measures are  taken
         now,  thus slowing  the  synfuel  industry  build-up rate indicated in
         Scenario  I.

     •   Diversion of  Investment to  Competing Technologies.   Demand on  the
         limited  capital  available in  the economy by competing energy supply
         technologies, such as  coal  liquefaction, coal  gasification,  oil
         shale, geothermal, and  solar  technologies, could result in the
         slowing  of build-up  rates for  some technologies.

     •   Environmental Data.   Lack of environmental data needed for
         regulatory approvals could  slow down the build-up  rate.

     Furthermore, the response  to questions on  the subject  of synfuel  plant
build-up asked in the course of interviews with potential  suppliers  of syn-
fuels as part  of  this study  (Appendix  A), indicates that the total synfuel
market  may  develop less  rapidly than  the national  plan.  The consensus
places  total  production  at 1.0  to 1.5  MMBPD by  1990.  According to poten-
tial suppliers,  the major  factors affecting the build-up rate include  the
degree  of  government  support and the effect of  environmental attitudes
towards  industry, especially regarding the Clean Air Act and water regula-
tions.   Potential  synfuel  suppliers  also pointed out that  shale oil  is
probably more  nearly  cost  competitive  and closer to commercialization  than
major coal-derived  synfuel  products.   Taking these concerns into
consideration, a  nominal  synfuel   production build-up, Scenario II,  was
developed  (Figure 2).  A production  rate of about 2.1  MMBPD is estimated by
the year 2000, instead  of  1992  as indicated in  Scenario I.   The technolo-
gies expected  to  contribute  to  both  Scenarios  I and II are  the same.  The
major difference  is in  the rate of  build-up:  Scenario II  is slower.
                                      22

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 g
      YEAR
            1984
                    1986
                            1988
                                    1990
                                            1992
                                                    1994
                                                            1996
                                                                    1998
                                                                         2000
 Figure 2.  Synfuel  Industry Build-Up for the Nominal Production Scenario


2.1.2.3  Accelerated Production - Scenario III

     The accelerated production scenario is based on  the  assumptions  that:
federal incentives are sufficient to meet the national  goals  in  1992;
operation of synfuel plants up to 1992 is so successful that  greater
investment in commercialization plants is justified;  all  resource  equipment
requirements are satisfied; and licensing/permitting  procedures  are ade-
quately streamlined.  In this case, new plant capacity  continues  to be
added up to the year 2000 at about the same rate  as  the build-up  to 1992.
For shale oil, the production of 0.9 MMBPD by the year  2000  is  based  on a
survey and analysis of the desired goals of each  industrial  developer.
                           indicated in Figure  3, a  total  synfuel
                           could be reached by  the year 2000.   This
                           liquids, 1.5 MMPBD of  gas, and 0.9 MMBPD of
Under these conditions, as
production rate of 5 MMBPD
includes 2.6 MMBPD of coal
shale oil.
      Because of the previously discussed  limitations  facing  the synfuels
industry, the accelerated production  scenario  is  highly  unlikely,  and
Figure 3 probably shows the upper bound  to  synfuels  utilization over the
next 20 years.

2.1.3  Other Synfuel Production Projections

     Table 6 includes  some recent projections  for synfuel  production taken
from published periodicals or  reports.   It  shows  the originating person or
organization, the projected synfuel  production,  and  the  source.  The
methods used for these estimates vary,  but  the most  common approach was to
                                      23

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                      TABLE  6.   SYNFUEL  PROJECTIONS
   Organization
           Projection
                Source
Eric Reich!,  former
President of Conoco
Coal Development

Booz, Allen  &
Hamilton
Frost & Sullivan
Exxon
DOE
       Institute
nology Assessnent
0.25 MMBPD   coal  liquids & gas  in
1990
Medium-Btu Gas-0.7 MMBPD in
1990
High-Btu Gas -1 KMBPD in
1995
             1990
2000
Synfuels  3/14/80



Synfuels  3/14/80

Inside DOE 4/25/80


Synfuels  2/8/80
                        Coal
                        liquids    1-1.5  MMBPD    9.5  Mf«PD
Coal
gas
Coal
gas
Coal &
Shale
1 iquids
Coal
1 iquids
Coal gas
Shale
0.8 MMBPD
1990
0.5 MMBPD
0.7-1 MMBPD
2000
0.7-1.8
0.8-1
0.9-1.3
2.2 MMBPD
2000
C.7-1.5 '-"-'BPO
3.3-4.6 MMBPD
MMBPD
MMBPD
MMBPD

Energy Outlook
1980-2000,
Exxon Company
Publication,
Dec. 1979
National Energy
Plan II
May 1979
                                          2000
All Synfuels  2.1

0^1 Shale     0.4 T3PD
Bankers Trust Co.
                 1990

All Synfuels  0.5 MMBPD
             Synfuels  8/22/80

             An  Assessment of
             Oil  Shale Tech-
             nology, June 1,
             1980
             0~A publication
             Synfuels  8/15/80
                                        24

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                     ItM
                             Itll
                                    itto
         Figure 3.   Synfuel  Industry  Build-Up for the Accelerated
                            Production Scenario
estimate total
estimate total
synfuels.
gas and/or liquids supplies, both donestic and  imported;
demand; and assume any differences would be supplied by
     As can be seen from the table, there  exists  a  wide  variance  in  synfuel
production projections.  The projections shown  range  from  0.25  WBPD of
coal-derived synfuels  in 1990 to almost 2.3 MMBPD in  1990  and  11.7 MMBPS in
2000.  Projections  for shale oil production generally  range  fron  0.5 MMBPD
to 3 or 4 MMBPD by  2000.  The production rates  estimated  for Scenarios I,
II, and III fall well  within the ranges of these  projections.

2.2  SYNFUEL PLANT  AND PRODUCT  BUILD-UP SCENARIOS
     The previous sections presented  three  scenarios  for  the development of
the  synfuel  industry  to  the  year 2000.   These scenarios project,  Py
year, the total quantity of  shale  oil,  liquids  from  coal,  and gases fron
coal that will enter  the market.   There  are  many  synfuel  processes:  each
has a characteristic  product slate, and  each  product  may  have a  character-
istic environmental impact as  it enters  the  transportation-  utilization
network.  Thus, the next step  of this analysis  of the environmental aspects
of synthetic  fuels utilization was  to consider  the major  competing synfuel
processes and, based  on current  industry plans  and the technical  maturity
of each process, break down  the  total production  into production by
specific process technologies.
                                      25

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2.2.1  Shale  Oil

2.2.1.1  Shale  Oil  Build-Up Rates

     The oil  shale  industry appears to be the most advanced of all  synfuel
industries  in the United  States.   There are several  majors (consortiums and
companies)  with established projects and plans (Table 2).   The techno-
logies, which are proprietary,  appear to be sufficiently mature to  move
ahead  to oil  shale  commercialization.  The commercialization of the indus-
try  is, however,  predicated on  several  of the factors discussed previously
(most  notably world oil  prices  and availability of risk-reducing
incentives)  and some specific  issues:

     t Land  problems such  as  land exchanges, leases, unpatented mining
        claims, and the  availability of off-tract disposal sites.   More
        than  80 percent  of  the  oil shale land is owned by the federal
        government.

     • Resolution  of environmental issues.  Certain majors already have a
        final EIS enabling  them to proceed to commercialization.  Colony
        has  a final EIS  for a  nominal 50,000 BPD complex and Union  has an
        EIS  for a 10,000  BPD commercial  module demonstration.  Other majors
        will  have to obtain permits before they can  proceed with commercial
        operations.

     • Availability of  skilled labor (e.g., hard rock miners) that is
        currently in short  supply.

     • Maturity  of technologies  (surface retorting  technologies are more
        advanced  than modified  in-situ technologies).

     • Distance  of resource location from likely end user regions  and the
        feasibility of upgrading  the existing oil  transportation system at
        a  reasonable cost.

     The development of  the oil shale industry as it might proceed  under
each of the three scenarios is  projected based on considerations for each
specific project  and process.

     Tables 7 through 9  summarize the development of the oil shale  industry
for each of the three scenarios.   Both the national  goals  and nominal  pro-
duction scenarios reach  a production rate of 440,000 BPD by the year 2000,
but the nominal   case builds up  more slowly.  The accelerated production
scenario reaches 930,000  BPD.

     The plant  build-up  rate levels off in the later years based on the
assumption that  production  will  remain at the maximum level  of a commercial
plant  with no new capacity  coming on-stream before 1990.  Where production
has not yet reached full  plant  capacity, it was increased  incrementally to
accommodate this.   It is  felt  that first-of-a-kind new technologies will be
brought on-stream in a careful, calculated, and conservative manner, with


                                      26

-------
                                                TABLE  7.   OIL  SHALE  PLANT  BUILD-UP,  SCENARIO  I
                                                           U.S. OIL  SHALE PRODUCTION - THOUSAND BPD
ro
Projected
Plant/Process
Exxon 011 Corporat1on/(A)
Occidental 011 Shale/(B),
Lease Tract C-b (PON)
Geoklnetlcs, lnc./(C),
Unlta Basin (PON)
Superior 011 (Mu1t1m1neral)/(D),
Plceance Basin
Tosco Sand Wash/(E),
Ulnta Basin
Union 011/(F),
Long Ridge, Plceance Basin
White River Project/(G),
Lease Tracts Ua.Ub, Ulnta Basin
Project Rio Blanco/(H),
Lease Tract C-a (PON)
Colony/Tosco/ (E),
Parachute Creek, Plceance Basin
Total
1980 1981 1982 1983 1984 1985 1986

5
2 4 10 12
13 13 13

9 9 9 40 80
444
4 4 4 14
9 9 9 36
•9 24 «1 80 164
1987

10
14
13

90
16
29
47
219
1988
30
20
16
13
21
90
33
43
47
313
1989
30
30
18
13
30
90
50
58
47
366
1990
37
40
20
13
43
90
50
60
47
400
Estimated
1991
60
50
20
13
47
90
50
60
47
437
1992
60
50
20
13
47
90
50
60
47
437
1993
60
50
20
13
47
90
50
60
47
437
1994
60
50
20
13
47
90
50
60
47
437
1995
60
50
20
13
47
90
50
60
47
437
1996
60
50
20
13
47
90
50
60
47
437
1997
60
50
20
13
47
90
50
60
47
437
1998
60
50
20
13
47
90
50
60
47
417
1999
60
50
20
13
47
90
50
60
47
437
2000
60
50
20
13
47
90
50
60
47
417
        •Source:  USOOE:  011 Shale Industrialization Action  Plan, Feb.  1980

        Process:
        A - Unknown
        B - Vertical modified 1n situ  (MIS)
        C - Small, horizontal, 1n situ  retort clusters
        0 - Surface retort,  traveling  grate
        E - Tosco II
        F - Union B
        G - Surface retort,  Paraho direct and Indirect modes
        H - Lural, surface retort

-------
TABLE 8.   OIL SHALE PLANT BUILD-UP, SCENARIO  II
           U.S. SHALE OIL PRODUCTION - THOUSAND RPfl
ESTIMATED
Company
Chevron Oil
Plceance Basin
Mobil Oil
Plceance Basin
Occidental 011 Shale
Lease Tract C-b
Plceance Basin
Geoklnetlcs, Inc.
Ulnta Basin
Tosco Sand Mash
Ulnta Basin
Getty
Plceance Basin
ro
00 Union 011
Long Ridge, Plceance Basin
White River Project
Lease Tracts Ua.Ub, Ulnta Basin
Project Rio Blanco
Lease Tract C-a
Plceance Basin
Colony
Parachute Creek, Plceance Basin
TOTAL
19B3 1984 1985 1986 1987 1988 1989 1990

25 40 50

4 10 10 10


15

3 5 10 10

25 40 50 50

5 10 10 10


,99 9 25 40 50

25


25 40 50

25 40 50 50 50
99 9 25 77 190 250 315
1991

50

25


25

20

50

10


50

40


50

50
370
1992

50

40


40

20

50

10


50

50


50

50
410
1993

50

50


50

20

50

10


50

50


50

50
430
1994

50

50


50

20

50

10


50

50


50

50
430
1995

50

50


50

20

50

10


50

50


50

50
430
1996

50

50


50

20

50

10


50

50


50

50
430
1997

50

50


50

20

50

10


50

50


50

50
430
1998

c~.

to


50

20

50

10


50

50


50

50
430
199*

50

50


bO

20

5C

10


50

50


50

50
430
2000

50

50


:o

20

50

10


50

50


50

50
430

-------
                                      TABLE 9.   OIL SHALE  PLANT  BUILD-UP,  SCENARIO III
                                                   U.S. OIL SHALE PRODUCTION - THOUSAND BPD
Plant/Process
Chevron 011 (A),
Plceance Basin
Mobil 011 /(A),
Plceance Basin
Occidental Oil Shale/(B),
Lease Tract C-b (PON)
Geoklnetlcs, Inc./(C)
Uinta Basin (PON)
Superior Oil (Multlmlneral)
V(D) Plceance Basin
Tosco Sand Wash/(E),
Uinta Basin
Union 011/(F)
Long Ridge, Plceance Basin
White River Project/(G)
Lease Tracts Ua. Ub, Uinta Basin
Project Rio B1anco/(B),
Least Tract C-a (PON)
Colony/Tosco/(E),
Parachute Creek, Plceance Basin
Naval Oil Shale Reserve/ (H),
Plceance Basin
Demonstration of above
Ground Retorting (DOE-PON)X(A)
Demonstration of Advanced
Retort Technology (DOE-PON)X(A)
Carter 01 1/ (A)
TOTAL
Projected
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990
5 10 20 30 40 50 75 100
6 6 30.6 42.5 50
6.3 30 50 50 87.5 140 200
5 5 10 15 25 40 50 50 50
6.7 10 12 12 12 12
25.9 38.4
8.6 8.6 8.6 27 45 45 45 45 45

19 45.6 76 76 76 76 76
25.9 38.4 46.2 46.2 46.2 46.2 46.2
28
8 4
8
16.8 24.9 30 45 60
13.6 26.6 83.8 102.7 305 340.1 427.3 557.6 713.6

1991
100
50
200
50
12
46.2
45

76
46.2
41.5

8
60
734.9

1992
100
50
200
50
12
46.2
45

90.8
46.2
50


60
750.2

1993 1994 1995 1996
100 100 100 100
50 78 91.5 100
200 200 200 200
50 50 50 50
12 12 12 12
46.2 46.2 46.2 46.2
45 45 45 45
45 90 90 90
111.6 135 135 135
46.2 46.2 46.2 46.2
50 50 50 50


60 60 60 60
816.0 912.4 925.9 934.4
Estimated
1997 1998 1999 2000
100 100 100 100
100 100 100 100
200 200 200 200
50 50 CO 50
12 12 12 12
46.2 46.2 46.2 46.2
45 45 45 45
90 90 90 90
135 135 135 135
46.2 46.2 46.2 46.2
50 50 50 50


60 60 60 60
934.4 934.4 934.4 934.4
*Source: Denver  Research Institute,  University of Denver, Oct. 1979

Process: A - Unknown
        B - VMIS, surface  retort
        C - Small, horizontal, 1n situ retort clusters
        0 - Surface, circular grate
        E - Tosco II
        F - Union B
        G - Paraho retort, direct and Indirect modes
        H - Process not selected

-------
maximum production being equal  to  one  commercial  plant  size.  Where  pro-
jections (e.g., Chevron, Mobil, Occidental  in  Scenario  III; and Union  in
Scenario I) already  show several commercial  plants,  no  attempt has been
made to decrease these plant outputs.

     The National Goals Scenario

     For Scenario I, the development of  individual  shale  oil  projects  is
given according to the United  States Department  of  Energy  Oil Shale
Industrialization Action Plan,  February  1980.   Table 7  presents the  devel-
opment schedule as taken from  the  DOE  Action Plan.   This  scenario  is based
on  interviews with persons  in  private  industry,  and  considers only those
projects at a relatively advanced  stage  of  development.

     The Nominal Production  Scenario

     For Scenario II, the nominal  production scenario,  the likely
development of major oil shale  projects  is  presented to the year 2000.
Taking into account  the current status of the  major  oil shale projects, and
incorporating the length of  time required to go  from the  current project
status to full commercial production,  the likely development  of the  oil
shale industry is estimated.   Two  years  are allowed  for preparation  and
approval of an environmental impact statement  (EIS), and  the  current
permitting  status of several oil shale projects  is  indicated  in Table  10.

         TABLE 10.  CURRENT  PERMITTING STATUS  OF OIL SHALE PROJECTS

              Project                          Status

              Occidental               Conditional PSD*
              Colony                   Final  EIS  and  conditional PSD
              Superior                 Final  EIS, land exchange
                                         reversal  pending
              Paraho                   Draft EIS


 *Prevention of significant  deterioration

     In addition, the technical problems peculiar to the  process technology
(e.g., pilot plant status,  scale-up requirements),  the  probable delays
caused by land problems or  difficulties  in  negotiating  licensing agree-
ments, and  the need  for a construction and  shake-down period  of about  four
years are taken into account.   All  of  these factors  were  compiled  together
to  produce  the production schedule given in Table 8.

     The Accelerated Production Scenario

     For Scenario III, the  accelerated production scenario, the development
of  individual oil shale projects is based on a Denver Research  Institute
survey of the desired goals  of  industry.  Table  9 presents the quantity of
shale oil  flowing from each  project for  each year to the  year 2000.


                                     30

-------
Because of the many impediments faced by industry and the  short  period  of
time left to resolve the critical  issues causing these impediments, the
probability that this accelerated scenario will be realized  is considered
to be low.  The way that each project might achieve its goal  is  outlined  in
the following paragraphs.

     Chevron Project.  The Chevron project will use a surface  retorting
technology, and it is assumed it will be scaled up over a  six-year  period
to 50,000 BPD.  A three-dollar-per-barrel tax credit, an investment tax
credit, or accelerated depreciation will be necessary to motivate this
project, and it is assumed these incentives become available  in  1980.
Engineering, design, and construction are completed in 1983  for  a first
module.  The plant is expanded and full production of 50,000  BPD is
achieved in 1988.   Due to the success of the first module, a  decision  is
made in 1987 to double the projected capacity, and the second  commercial
plant comes on-stream in 1990 for a total capacity of 100,000  BPD.

     Mobil Project.  It is assumed that incentives are provided  in  1982,
and over a four-year period a 6,000-BPD module is developed.   Two years
after successful operation of the module, commercial operation begins  on  a
56 percent, 83 percent, 100 percent startup profile.  Commercial capacity
of 50,000 BPD is reached in 1990 and capacity is doubled in  1996.

     Occidental Project.  Given successful technical results  from the  Logan
Wash pilot operation and the C-b tract work, the Occidental  modified  in
situ (MIS) project is assumed to follow two phases:  Phase  I  producing
50,000 BPD by 1986; and Phase II producing 200,000 BPD by  1990.  Of the
200,000 BPD capacity, 62 percent will be MIS and 38 percent  will be surface
retorting.   Phase I begins in 1984 and  is scaled up from  two  retorts  to
ten retorts over a three-year period.  Phase II goes into  start-up  in  1988
on a 25 percent, 60 percent, 100 percent start-up profile,  full  capacity
being achieved in 1990.

     Carter Oil Project (Exxon).  This project will require  a  three-dollar-
per-barrel tax credit land exchange and a ten-percent investment tax
credit.   It is assumed that these incentives are provided  by 1982 and  that
Carter Oil initiates development as soon as the incentives  are available.
The plant  is expected to be expanded from an initial 16,000  BPD  in  1986 to
60,000 BPD in 1990 by successive modular additions.

     Geokinetics Project.  The Geokinetics project will consist  of  a  set  of
small, horizontal  in situ retort clusters, each with a maximum capacity of
5,000 BPD.  The following schedule of development is assumed:
                                      31

-------
            Year                Location                    Name

            1982         Section 2,   T145,  R224        Hollandberg
            1984         Section 23,  T125,  R20E        Agency Draw #1
            1985         Section 13,  T135,  R20E        Agency Draw #2
            1986         Section 36,  T125,  R22E        Buck Canyon
            1986         Section 16,  T135,  R22E        Sunday School
            1987         Section 10,  T135,  R22E        Wood Canyon
            1987         Section 36,  T135,  R23E        McCook Ridge
            1987         Section 16,  T135,  R24E        Brewer Canyon
            1988         Section 2,   T135,  R24E        Wolf Den  #1
            1988         Section 36,  T125,  R24E        Wolf Den  #2

     White  River  Project.   Prior to  beginning  this  project,  the developers
must win  favorable  rulings on  land  ownerships  and  unpatented mining claims.
We assumed  the  legal  rulings  are favorable but not  completed until the  late
1980's.   This  paves  the  way to  construction in 1990,  start-up in 1993,  and
production  of  90,000  BPD in 1994.

     Rio  Blanco Project.  It  is assumed that  the economic  climate is
favorable and  that  the 1980-81  pilot burns are successful.   Construction
begins  immediately  after the  pilot  production  begins  in  1984 on a 25
percent,  60 percent,  100 percent start-up  profile;  and a  full  commercial
production  of  76,000  BPD is achieved in 1986.   A second  phase of construc-
tion begins  in  1989  after  the  initial  phase has been  evaluated.   The  same
start-up  profile  applies for  the second phase, and  a  production capacity of
135,000 BPD is  achieved  in 1994.

     Superior  Oil Project.  The Superior Oil  Project  depends on a federal
land exchange  before  development can begin.   We assumed  the  necessary lands
are acquired,  and construction  begins in 1981  leading to  production in
1985.  After 1985,  a  start-up  profile of 56%,  83%,  100%  is  assumed leading
to a full capacity  of 12,000  BPD in  1987.

     Colony/TOSCO Project.   We  assumed the risks due  to  environmental
regulations  and third party suits  have been minimized, and  financial  incen-
tives have  been supplied by the government by  1981.   Construction commences
in 1981,  and production  begins  in  1984 on  a 56%, 83%, 100% start up profile
reaching a  total  capacity  of  46,200  BPD in 1986.

     TOSCO  Sand Wash  Project.   This  project follows the  same schedule and
constraints as  the  Colony/Tosco project; however, the production schedule
is delayed  five years as the  Colony/Tosco  project is  evaluated.   Production
begins in 1989  and  reaches  its  full  level  in 1991 of  46,200  BPD.

     Union Oil  Project.   We assumed  the three  dollars per  barrel  tax  credit
is passed in 1980 providing adequate incentives for construction to begin
immediately.  The 10,000 ton/day demonstration plant  is  assumed to be
successful and  comes  on-stream  in 1982 producing 8,6000 BPD.  Owing to  the
                                      32

-------
success of the demonstration plant, capaciity is extended  to  achieve  30,000
BPD by 1986 using 7 retorts each averaging 10,000 tons  per day  of  thirty
gallon per ton (avg.) oil shale

     Naval Oil Shale Project.  Feasibility studies will  be used  to
determine the specific process technologies used to achieve a goal  of
50,000 BPD in 1992.  A 56 percent, 83 percent, 100 percent start-up profile
is assumed to begin in 1990.

     Department of Energy Demonstration of Above-Ground  Retorting  Project.
The schedule given in Table 9 is taken from DOE management objectives.

     Department of Energy Demonstration of Advanced Retort Project.   The
schedule given in Table 9 is derived from a private communication  with
DOE-LETC.

2.2.1.2  Shale Oil Product Build-up Rates

     The product and by-product build-up rates for the  three  scenarios  are
presented in Figures 4, 5, and 6.   These product rates  correspond  to  the
projected plant build-up rates and processes identified  for each plant.
In some cases, such as for Exxon and Chevron where no choice  of  process has
been announced, a shale oil  recovery process was arbitrarily  assigned.
If, when that company begins actual operation, a different process  is
chosen, the impact on the shale oil industry totals should not  be  signifi-
cant.  The upgrading process used was either hydrotreating or coking; the
particular process applied to each crude shale oil can  be determined  by the
presence or absence of coke.

     Three major refining processes were considered   coking, fluid
catalytic cracking, and hydrocracking (Reference 6).   Hydrocracking was
chosen for two reasons.  First, its yield and range of  products  were  the
most desirable.  Second, many industry publications, such as  the Oi1  and
Gas Journal, report that the use of hydrocracking will  grow significantly
during the remainder of this century.  Typical yields from hydrocracking
(Reference 7) are:

                   Product                 Percent Yield

                   LPG                            0
                   Gasoline                      17
                   Jet fuel                       20
                   Diesel fuel                   54
                   Residues                       9
     Taking the total production of shale oil as given  in Tables  7,  8,  and
9, and multiplying the total production by the  fraction of  each  product
produced by hydrocracking yields the total flow rates of the  final  products
                                     33

-------
from oil  shale processing  and refining.  Classifying jet fuel  and  diesel
fuel as middle distillates,  the product  flow  rates indicated  in  Figures 4,
5, and 6  are obtained.
The major  markets expected
transportation fuel market
It is  anticipated that  the
petroleum  fuel.
                     to be served are  the  middle-distillate
                     (jet and diesel fuels)  and the gasoline  market.
                     refined products  will  be indistinguishable from
    o
    0.
    CD
    z
        o.a
        0.7
        0.6
0.5
        0.4
        0.3
        0.2
        0.1
         1980
                                                       Gasoline

                                                       • -Idle Distillates
                                                               Residues
           1984
1988       1992
     YEAR
                                                 1996
                                                   2000
             Figure  4.   Oil Shale  Product Build-Up  For  Scenario I
                                        34

-------
£
o
z
1.0



0.9



0.6



0.7



0.6


0.5



0.4



0.3



0.2



0.1
              Gasoline
                                            ^.^SRi=~T}5£rir= T5S Middle Distillates
                                                                  Residues
        1980
                   1984
                       1988         1992
                             YEAR
1996
                                                               2000
   Figure 5.   Oil  Shale Product  Build-Up For Scenario II
CD
       1.0
       0.9
      0.8
       0.7
       0.6
       0.5
       0.4
       0.3
       0.2
       0.1
                                                                   Gasoline
                                                                 s Middle Distillates
                                                                   Residues
        1980
                   1984
                        1988        1992
                             YEAR
 1996
2000
   Figure 6.   Oil  Shale Product  Build-Up  for  Scenario  III
                                     35

-------
2.2.2  Coal Liquefaction  and Gasification

     The likely contributions  of  the  specific  coal  liquefaction and
gasification processes are  considered  in this  section,  in  accordance with
the overall levels of production  given  in  Scenarios  I,  II, and  III.  Coal
liquefaction is divided into direct and  indirect  liquefaction;  coal gasi-
fication is divided  into  high-  and medium-/low-Btu  gasification.   The
specific processes considered  are  listed in  Table 11.

            TABLE 11.  PROCESS  TECHNOLOGIES  UNDER CONSIDERATION
        Direct
      Liquefaction
  Indirect
Liquefaction
  High-Btu
Gasification
Med-/Low-Btu
Gasification
SRC
H-Coal
Fischer-Tropsch
Mobil -M
Lurgi
Slagging-Lurgi
Lurgi
Texaco Partial
Oxidation
EDS Advanced
Indirect
Advanced
Fluidized Bed
Advanced
Direct
     These processes were  selected  based  on  technical maturity  (Reference
8, 9) and suitability  to the  end  use  application.   Process  technologies  not
included may play a  significant  role;  however,  they produce  similar
products and will not  differ  noticeably  in their  environmental  impact.

     Additional  comment  is  warranted  concerning SRC.  There  are  two  major
SRC processes earmarked  for commercialization:  SRC I and  SRC  II.
Traditionally, SRC  I produces primarily  a  solid product, whereas SRC II
produces primarily  a liquid product.   Recently, however, techniques  for
modifying the SRC I  process to produce liquids  have been demonstrated  at
the bench scale  (Reference  10).   Because the relative viability  of the two
processes has yet to be  determined,  and  because the final  product  slates
may vary considerably,  SRC  I  and  SRC  II  are  both  classified  together as
SRC.

     As direct liquefaction technology matures, promising  developments
(such as short contact  time liquefaction)  now occurring  at  the  bench scale
could develop into  commercial processes  in the  next decade.   These pro-
cesses are likely to have  greater yields  of  gasoline and middle  distillate.
To make a realistic  appraisal of  the  environmental  impact  of the utiliza-
tion of coal liquids,  changes in  technology  over  time are  considered.
Because the precise  process that  will  dominate  in  the future cannot  be
predicted, the generic  term,  advanced  direct liquefaction,  is  used.
Similarly, a number  of  indirect  liquefaction processes  being developed at
the bench scale  have shown  significant improvements over the conventional
Fischer-Tropsch  and  Mobil-M processes  in  terms  of product  yield  and  qual-
ity.  These processes  could be very  important in  the 1990's  and, therefore,
                                      36

-------
are considered under the  generic  name  advanced  indirect liquefaction.
Advanced fluidized bed gasification  refers  to  any  circulating, agglomer-
ating, fluidized bed gasifier  such as  Westinghouse or U-Gas.

2.2.2.1  Coal Liquefaction Plant  Build-up Rates

     The coal liquefaction plant  build-up rates  for the three scenarios
described in Section 2.2.2 are  presented in  Tables 12 through 14.   These
three tables give the cumulative  number  of  50,000  BPD coal  liquefaction
plants on-stream for the  three  time  periods  1980-1987,  1988-1992,  and
1993-2000.   For Scenario  I, the national goals  scenario, the goal  of 1MMBPD
of coal liquids by 1992 is met  predominately by  indirect coal  liquefaction
(80 percent).  Scenario III, accelerated production,  builds up at  the same
rate as Scenario I to 1992, and continues to build up at that rate so that
by the year 2000, 2.6 MMBPD is  produced.  For  Scenario I, no new capacity
beyond 1992 is projected.  For  Scenario  II,  the  nominal  case, no plants are
projected to be on-stream until 1992,  with  a growth rate beyond that year
yielding about 1.0 MMBPD  in the year 2000.   The  rationale supporting pro-
jections of specific plant and  product build-up  rates is outlined  in the
following paragraphs for  each of  the three  time  frames.

     1980-1987
     The technological status of coal  liquefaction  during  this  time can be
characterized by the following observations:

     •  At present, the only commercially demonstrated  coal  liquefaction
        process is the Fischer-Tropsch process  used  in  the SASOL plant in

         TABLE 12.  COAL LIQUEFACTION  PLANT  BUILD-UP FOR  SCENARIO I
Process
Indirect Liquefaction
Fischer-Tropsch
Mobil M
Advanced Indirect
Direct Liquefaction
SRC
H-Coal
EOS
Advanced Direct
Total Indirect Liquefaction
Total Direct Liquefaction
Total Liquefaction
Number of Plants on
80 - 87 88 - 92

3 7
3 8
1

1
1
1
1
6 16
4
6 20
Stream
93 - 2000

7
8
1

1
1
1
1
16
4
20
         Note:  Numbers indicate cumulative number of 50,000 BPD plants during
               different  time periods.
                                      37

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TABLE  13.  COAL  LIQUEFACTION PLANT  BUILD-UP  FOR SCENARIO II
Process
Indirect Liquefaction
Fischer-Tropsch
Mobil M
Advanced Indirect
Direct Liquefaction*
Total Indirect Liquefaction
Total Direct Liquefaction
Total Liquefaction
Number of Plants on
80 - 87 88 - 92

1
1
1
2
1
3
Stream
93 - 2000

2
2
9
7
13
7
20
 *Process not specified.

 Note:  Numbers indicate cumulative  number to 50,000 BPD plants  during
       different time periods.
TABLE 14.   COAL LIQUEFACTION  PLANT BUILD-UP FOR SCENARIO III
Process
Indirect Liquefaction
Fischer-Tropsch
Mobil M
Advanced Indirect
Direct Liquefaction
SRC
H-Coal
EDS
Advanced Direct
Total Indirect Liquefaction
Total Direct Liquefaction
Total Liquefaction
Number of Plants on
80 - 87 88 - 92

3 7
3 8
1

1
1
1
1
6 16
4
6 20
Stream
93 - 2000

7
8
17

2
2
2
14
32
20
52
 Note:   Numbers indicate cumulative number of  50,000 BPD plants during
        different time periods.
                                 38

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        South Africa.  This process, which is an example of indirect  lique-
        faction, has been commercially operated since 1956.  Currently  a
        new plant incorporating process improvements is in start-up as  an
        expansion program (Reference 11).

     t  A second indirect liquefaction process, the Mobil-M process,  should
        be commercially demonstrated within this time period (Reference
        12).  A pilot scale demonstration in Germany is scheduled for 1983,
        and a commercial  plant operating on reformed natural gas is
        scheduled for operation in New Zealand by 1984.

     •  At present, there are no commercially demonstrated direct coal
        liquefaction processes (Reference 8).  Exxon Donor Solvent  (EDS)
        and H-Coal  pilot  plants are scheduled to start operation and
        assessment of operating data from these plants should be sufficient
        to determine their commercial  readiness and competitive position
        relative to indirect liquefaction by 1984.  In addition, the  SRC
        demonstration plants should be operating by 1984, providing an
        initial assessment of commercial readiness.

     To meet the production schedules  suggested by Scenarios I and  III,
industry, with the federal incentives, must initiate the design and
construction of about six coal liquefaction plants early in the 1980-1987
time period and ten additional coal liquefaction plants in the 1980-1987
time period, each plant having a nominal production rate of 50,000 BPD  of
oil  equivalent.  The plants must be initiated well in advance of the  target
date for commercial production because four to five years are required  to
design, construct, and start up a commercial scale coal liquefaction  plant
(Reference 13).

     Appendix B summarizes the coal liquefaction projects currently being
planned or commercially operated by industry.  Nine commercial coal lique-
faction projects have been identified, and are listed on page B-2.  All of
these projects use indirect liquefaction processes to produce either  metha-
nol  or hydrocarbons, with the hydrocarbon processes consisting exclusively
of the Fischer-Tropsch technology as embodied in the SASOL plants.
Appendix C summarizes the solicitation awards for feasibility studies and
cooperative agreements issued recently by the U.S. Department of Energy to
promote synfuel projects.  These appendices demonstrate that industry and
government favor indirect liquefaction over direct liquefaction and that
they are confident of the commercial viability of the SASOL technology  in
the United States.

     SASOL has a broad product distribution, whereas Mobil-M produces
primarily gasoline, a highly marketable product.  However, SASOL has  been
commercially demonstrated in South Africa, but Mobil-M may not be commer-
cial until after 1984.  On balance, it appears at this time that there  are
equal incentives to develop and build both SASOL and Mobil-M plants,  and
that their development rates are likely to be the same.  Three plants of
each type are projected to come on stream during this time  frame.
                                     39

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     Direct  liquefaction  is  more  thermally efficient  than  indirect
liquefaction  (Reference  14);  therefore,  direct  liquefaction  is  likely  to
play a major  role  after  the  successful  operation  of the  demonstration
plants.  Because direct  liquefaction  technologies  are less  advanced  tech-
nically, there  is  likely  to  be  no decision to  commercialize  direct coal
liquefaction  until  the  end of the 1980-1987 period.   These  plants will
probably not  come  on-stream  until  the 1988-1992 time  period,  because four
to five years will  be  required  to construct them  and  make  them  operational  \
Accordingly,  no direct  liquefaction  plants are  projected to  come  on-strear
in the 1980-87  period.

     In contrast to Scenarios I  and  III,  the nominal  Scenario II  does  not
project any  coal liquefaction plant  coming on-stream  in  the  1980-1987  time
period.  Towards the  end  of  the  1980-1987 time  period,  it  is  likely  that
plans and  construction  will  begin for plants to   come on stream in the
1988-1992  period.

     1988-1992

     The technological  status of  coal  liquefaction in this  period  is
characterized by the  following  observations:

     t  Depending  on  the  intensity of commercialization  efforts initiated
        in the  1980-1987  period,  varying  numbers  of indirect  coal  lique-
        faction plants  embodying  both Fischer-Tropsch and  Mobil-M
        technology  will  come  on-stream.

     •  It is expected  that  the  EDS  and  H-Coal  pilot  plants  are operating,
        and  the SRC demonstration plants  are providing  information requirec
        for  commercial  scale-up  (Reference 15).   In addition, certain
        advanced concepts (e.g.,  short  contact  time liquefaction  and Kolbe1
        technology  (Reference 16) are likely to be incorporated into the
        commercial  process technologies.

     For Scenario  I,  no  new  construction  will  be  initiated  in this period.
For Scenario  III,  however, a  vigorous program  of  construction will
continue.  A  total  of  32  liquefaction plants will  come on-stream  in  the
1993-2000  time  frame;  this will  require  the planning  of  four  new  plants
each year, starting in  1988.   The commercial testing  of  direct  liquefaction
is likely  to  be successful and  the decision will  be made to  initiate the
construction  of four  direct  liquefaction  plants,  probably  one each for SRC,
EDS,  H-Coal,  and an  advanced  direct  liquefaction  process.   Also,  because of
their attractive product  distributions  deriving from  the development of
improved catalysts,  advanced  indirect  liquefaction processes  will  probably
remain competitive  with direct  liquefaction.  The  remainder  of  the plants
initiated during this  time period under  Scenario  III  will  likely  be
indirect liquefaction  plants, probably  advanced indirect liquefaction.

     As indicated previously  for  the  1980-1987  time frame,  Scenario  II
predicts a significantly  less intensive  commercial  effort  than  Scenarios  I
and III.   As mentioned  in Section 2.1,  there are  technical  and  socio-
                                      40

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economic constraints on the development of coal  liquefaction.   These
constraints will probably remain until the late  1990's.  For  Scenario  II,
then, it is estimated that a coal liquefaction commercialization  program
will not be launched until about 1987, at which  time a decision will be
made to initiate approximately three projects per year, one of  direct
liquefaction and two of indirect liquefaction.   The direct liquefaction
processes will  probably initially involve the same technology used  in  1984,
but by about 1990, advanced direct liquefaction  should reach  commercial
readiness and begin to be incorporated into direct liquefaction commercial
plants.

     Indirect liquefaction plants will initially incorporate  SASOL-type
Fischer-Tropsch and Mobil-M technologies.  Although the pioneer Mobil-M
plant initiated in 1984 incorporated fixed-bed Mobil-M technology with a
Lurgi gasifier providing the synthesis gas feed, by 1988 the  fluid  bed
technology and Texaco partial oxidation (Reference 8) will likely be
commercially ready and incorporated into all future Mobil-M plants.  Also
by 1990, advanced indirect liquefaction will replace SASOL-type Fischer-
Tropsch technology.

     1993-2000
     For Scenario I, there will be no further build-up of production
capacity for the same reasons outlined for shale oil production  in  the  same
time frame.  On the other hand, Scenario III assumes a continued  build-up
of production capacity at the rate of about four 50,000 BPD plants  per
year, reaching a production capacity of 2.6 MMBPD in 2000.  The  technology
used in these plants will probably be evenly split  between advanced
indirect liquefaction and advanced direct liquefaction.

     For the nominal case, Scenario II, production  capacity is expected  to
increase at a rate of about three 50,000 BPD plants per year to  the end  of
the decade and reach an ultimate level of 1.0 MMBPD by the year  2000.
During this period, a total of two Mobil-M plants and two Fischer-Tropsch
plants will be built, whereas advanced indirect liquefaction plants will
be introduced at a rate of about one per year before leveling off at  the
end of the decade.

2.2.2.2   Coal Gasification Plant Build-up Rates

     The coal gasification plant build-up rates for the three scenarios  are
presented in Tables 15 through 17.  These three tables give the  cumulative
number of 42,000 BPD (250 MMSCFD) high-Btu gasification plants and 30,000
BPD medium-/low-Btu gasification plants on-stream for the three  time
periods 1980-1987, 1988-1992, and 1993-2000.  For Scenario I, 0.6 MMBPD  of
coal-derived gasification product is produced by 1992.  Scenario III  builds
up at the same rate as Scenario I to year 1992, and continues at  that rate
so that by the year 2000, 1.5 MMBPD of coal-derived gas is produced.   For
Scenario II, the 1992 production rate is expected to be only 0.7 MMBPD,
                                      41

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TABLE 15.   COAL GASIFICATION  PLANT BUILD-UP FOR SCENARIO I
Process
High-Btu Gas
Lurgi Fixed-Bed
Advanced Fluid Bed*
Low-/Medium-Btu Gas
Lurgi Fixed-Bed
Texaco Partial Oxidation
Total High-Btu Gas
Total Low-/Medium-Btu Gas
Number
80 - 87

7

5
1
7
6
of Plants on
88 - 92

11
1

7
3
12
10
Stream
93 - 2000

11
1

7
3
12
10
      *Example:   U-Gas or Westinghouse

      Note:   Cumulative number fo 42,000 BPD high-Btu plants and 30,000 BPD
             medium-/low-Btu plants.
TABLE  16.  COAL  GASIFICATION PLANT  BUILD-UP  FOR SCENARIO  II
Process
High-Btu Gas
Lurgi -Fixed Bed
Slagging Lurgi
Medium-Btu Gas
Lurgi Fixed-Bed
Texaco Partial Oxidation
Total High-Btu Gas
Total Medium-Btu Gas
Number
80 - 87

1

2
1
1
4
of Plants on
88 - 02

4

6
3
4
9
Stream
93 - 2000

4
2

9
6
6
15
     Note:  Cumulative number of 42,000 BPD high-Btu plants and 30,000  BPD
           medium-/low-Btu plants.
                                        42

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        TABLE  17.   COAL GASIFICATION PLANT BUILD-UP FOR SCENARIO III
Process
High-Btu Gas
Lurgi Fixed-Bed
Advanced Fluid-Bed*
Low-/Medium-Btu Gas
Lurgi Fixed-Bed
Texaco Partial Oxidation
Total High-Btu Gas
Total Low-/Medium-Btu Gas
Number
80 - 88

7

5
1
7
6
of Plants
88 - 92

11
1

7
3
12
10
on Stream
93 - 2000

16
8

11
7
24
18
 *Example:   U-Gas  or Westinghouse

 Note:   Cumulative number of 42,000-BPD high-Btu plants and 30,000-BPD
        medium-/low-Btu plants.
with the growth rate beyond that year yielding about 1.0 MMBPD in 2000.
The rationale supporting these projections is outlined in the following
paragraphs.

     1980-1987

     The Lurgi fixed-bed gasifier is the leading state-of-the-art high-Btu
gasifier (Reference 17); consequently, it will probably be used in all
high-Btu gasification plants built in this period.  For medium-/low-Btu
gasification, the Lurgi gasifier is also currently the leading technology,
but it is likely the Texaco partial oxidation process will also play  a
major role.  There has been strong industrial and government interest  in
the Texaco gasifier (Appendices B and C).  The product gas has a  very low
methane content (desirable for the chemical industry); the Texaco gasifier
will run on the caking coals characteristic of the eastern U.S.;  a demon-
stration plant is likely by 1983.  Therefore, it is likely there  will  be  at
least one commercial Texaco gasifier operating by the end of this period.

     The production from the high-Btu gas plants would be used solely as  a
substitute for natural gas, while the medium-Btu gas would be used for
                                     43

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industrial heat and chemical feedstocks.   In all of  the  scenarios,  there
will be no production  of  low-Btu  gas  for commerce.   Any  low-Btu  gas would
be  used as fuel  gas  or used  on  site for combined  cycle  power  generation.

     For  Scenarios  I  and  III,  seven high-Btu  gasification  plants equipped
with Lurgi gasifiers  will  come  on-stream during this period.   For medium-/ ]
low-Btu gasification,  Lurgi  will  be the preferred  gasifier because of the
advanced  state  of  its  technology.   The Texaco  gasifier  will also likely
play an important  role because  of current industry interest.   One Texaco
medium-/low-Btu  plant  and  five  Lurgi  medium-/low-Btu gas plants  are likel)
to  come on-stream during  this  period  for these two scenarios.

     For  Scenario  II,  there  will  be one Lurgi  high-Btu  gasification plant
coming on-stream  (the  Great  Plains project).   Three  Lurgi  plants and one
Texaco plant  will  produce  medium-/low-Btu gas  during this  period.

     1988-1992

     In Scenarios  I  and III, it is likely that the slagging Lurgi process
(Reference 18)  will  be demonstrated to be technically viable  and it is als:
likely that the  slagging  Lurgi  process will  be more  efficient  and
economical than  the  conventional  fixed-bed Lurgi  gasifier.  Thus, all  new
fixed-bed plants  initiated in  this period will use the  slagging  technology.
Late in this  period  it is  likely  that advanced fluid-bed gasification will
achieve commercial  readiness and  four plants  using this  technology will  be
initiated.

     For  Scenario  III, additional  plants planned  for beyond 1992 will  use
slagging  Lurgi  fixed-bed  gasification, advanced fluid-bed  gasification,  anc
Texaco gasification.   No  new plants will be  planned  after  1992 under
Scenario  I.

     According  to Scenario II,  there  will be  four  Lurgi  high-Btu
gasification  plants  coming on-stream.   In this scenario, the  demand for
medium-Btu gas  is  high, encouraging investment in  the Texaco  gasifier.
Six Lurgi plants and  three Texaco plants are  likely  to  produce medium-/
low-Btu gas during  this period.

     1992-2000

     Within this period,  plans  will continue  for  increased gasification
capacity  under  Scenario III  at  the rate of three  high-Btu  gas  plants and
two medium-Btu  gas  plants  every two years.  Plans  will  be  initiated for an
additional four  advanced  fluid-bed gasifiers,  and  by the year  2000 a total
of eight  advanced fluid-bed  gasifiers will be  producing  high-Btu gas; the
remaining high-Btu  gasifiers will  be  slagging  Lurgi.

     For Scenario II,  two  high-Btu plants using the  slagging  Lurgi
technology are  likely  to be  initiated in 1988-1992 and  will come on-stream
                                      44

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after 1992.  For medium-/low-Btu gas, three additional conventional  Lurgi
fixed-bed gasifiers will come on-stream and three Texaco partial  oxidation
plants will come on-stream.

2.2.2.3  Coal-Based Synfuel Product Build-Up Rates

     In Sections 2.2.2.1 and 2.2.2.2, the number of coal conversion  plants
on-stream for the three time periods was given in accordance with  Scenarios
I, II, and III.  In this section, the flows of the individual  products
produced by the coal liquefaction plants are given (Figures 7  through 9).
The coal liquefaction products considered are:  high-Btu gas,  LPG,
gasoline, naphtha, middle distillate, and residuals.   Each coal
gasification process has only a simple major product—either low-, medium-.
or high-Btu gas, and the coal gasification build-up rates were considered
in Section 2-1.

     For each coal conversion process, for each coal  feedstock, and  for
each set of process operating conditions, a distinct product slate results
(References 19-24).  The product flows presented are taken as  most likely
given the three scenarios, and are based on the current published  design
conditions for the processes.  A detailed breakdown of the products  is
taken from the plant design; the products are classified as being  high-Btu
gas, middle distillate, naphtha, etc.; the flow rates of the products are
normalized to a 0.05 MMBPD plant; and then the product flow rates  are
multiplied by the number of plants given in the plant build-up scenarios to
give the total  flow for each major product.   Although two products may have
a similar boiling range, their toxicities may be very different; therefore,
placing the products into boiling range and composition categories gives
only an approximate understanding of the total magnitude of the environ-
mental  problems posed by their transportation and utilization.
                                     45

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  MMBPO
                                                          Gasoline
          1980
                                          	^~  Middle Distillates
                                         ??OTmrrW?miwiW':  High-Btu Gas
                               Gasoline
                               Naphtha
                               Middle Distillates
                               Residues
                   1984
                            1988      1992
                                YEAR
                   1996
                            2000
                                                                               Indirect
                                                                               Liquefaction
                                                                               Direct
                                                                               Liquefaction
     Figure  7.    Coal  Liquefaction  Produce  Build-Up  for Scenario  I
MMBPD
                                                        Gasoline
         1980'
                                                     S Middle Distillates
                                                        LPG
                                                        Naphtha


                                                        Middle Distillates
                                                        Residues
                  1984
1988      1992
    YEAR
                                            1998
                                                                              Indirect
                                                                              Liquefaction
                                                                             Direct
                                                                             Liquefaction
   Figure 8.    Coal  Liquefaction Product  Build-Up for  Scenario  II
                                            46

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        3.0
        2.5
MMBPO
        2.0
        1.5
        1.0
        0.5
                                                              Gasoline
                            ^=1  Middle Distillates
                                  High-Btu Gas

                                  LPG
                                  Gasoline
                                                           =£   Naphtha
                                                               Middle Distillates
                                                               Residues
            1980    1984
1988       1992
    YEAR
                                                1996
                                                        Indirect
                                                        Liquefaction
                                                        Direct
                                                    ^    Liquefaction
    Figure 9.    Coal  Liquefaction  Product Build-Up  for Scenario  III
                                            47

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                                  SECTION 3

             MARKET  ANALYSIS  OF SYNFUEL PRODUCTS AND BY-PRODUCTS
     This  section  describes an analysis of the regional  market development
of  synfuel  products and by-products.   This analysis is based on the survey
of  existing  petroleum and  natural  gas marketing systems  discussed in
Appendix D  and  the data developed  in  Section 2 on the  type and number of
synfuel plants  required to meet the three synfuel production scenarios.
Specifically, this section discusses:  (1) synfuel  plant siting and antici-
pated  regional  synfuel  production  rates;  (2) synfuel  product utilization;
and  (3) likely  regional  distribution  and  utilization  of  synfuel  products
and by-products in the ten federal  EPA regions in the U.S.  An overview of
this section  is  presented  in  the next four paragraphs.

     The shale-based  commercial  synfuel  plants will  be located mostly in
the  Colorado, Utah region  where most  oil  shale resources are located.
However, the  exact locations  of commercial coal-based  synfuels plants are
difficult to  predict  at this  time.   But it is very  likely they will  be
located in  regions with abundant coal resources,  which means they will  be
located in EPA  Regions  III, IV,  V,  VI and VIII.   The  major synfuel  products
will be gaseous  products consisting mainly of high-Btu gas, medium-Btu gas,
low-Btu gas,  and liquefied petroleum  gas; light  distillates consisting
mainly of gasoline;  middle distillates consisting primarily of jet  fuel,
kerosene, and diesel  oil;  and residuals consisting  mainly of heavy  fuel
oil; and petrochemicals.  The high-Btu gas will  be  used  primarily as a
heating fuel  in  industrial, commerical, and residential  sectors as  a sub-
stitute for  natural  gas.  Medium-Btu  gas  will be  used  as a boiler fuel  as
well as a chemical  feedstock.   Its  primary chemical  feedstock  use is likely
to  be  for the production of methanol.  Low-Btu gas  will  be limited  to
en-sit? use  in  industrial  processes as a  fuel and not  as a chemical  feed-
stock.  Liquefied  petroleum gas  will  be used for  domestic heating,  as an
engine fuel,  and for  the production of ethylene  and  propylene, as well  as
for  the manufacture  of  synthesis gas.  Gasoline,  which forms the bulk of
light distillates, will  be used  primarily for automobiles.   Middle  dis-
tillates will be used  primarily as  a  industrial,  utility, and  marine
application.  They will  also  be  used  for  the production  of lubricants,
metallurgical oils,  roof coatings,  and wood perservative oils.

     Shale-derived synfuel  will  be  introduced into  the petroleum market
around 1985 primarily  to serve the  transportation market.  According to
Scenario II, which will  be used  as  a  baseline scenario for discussion in
this section, as much  as 80,000  BPD of shale oil  will  be produced by 1987.
                                      48

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One major customer of shale oil is likely to be the Department  of  Defense.
Two Air Force Bases in the West—Mountain Home AFB in  Idaho  and Hill  AFB  in
Utah—will  probably be the major users of shale oil for their aircraft
testing program.   They could consume as much as 20,000 BPD by the  late
1980s.  The bulk of the remaining shale oil produced is likely  to  be  used
within EPA  Region VIII (which includes the states of Utah and Colorado),  at
least during the early years of production.  As the production  capacity
increases starting in the late 1980s, as much as 0.2 MMBPD of shale oil
could be shipped via an existing pipeline system to the Midwest region,
which is in EPA Region V.   There, shale oil is likely to be  used mainly by
the transportation sector.

     The largest and earliest adoption of high-Btu gas production  is  likely
to occur in EPA region VIII as part of the Great Plains gasification
project.  The gas from this project is likely to enter Region V.   High-Btu
gas from subsequent plant build-ups in Region VIII will be entering Region
VI, that is Iowa, Kansas, Missouri, and Nebraska.  High-Btu  gas from  plants
built in Region VI, New Mexico being a likely location, may  enter  gas
markets in  Arizona, California, and Nevada which constitute  Region  IX.  Any
high-Btu gas from plants built in the Middle Atlantic region, for  example
in Pennsylvania, will be consumed within the region.  As per our nominal
scenario (Scenario II), the U.S. could be producing as much  as  0.09 MMBPD
of medium-Btu gas by 1987.  Likely locations are Tennessee,  New Mexico, and
Montana.  These plants are very likely to be used in a captive  mode by
industries  to supply some of their fuel and chemical feedstock  needs.  For
example, they could be utilized by the chemical companies as a  source of
synthesis gas for the production of methanol and ammonia.  During  the 1990s
when the production of medium-Btu gas is expected to increase
substantially, industrial  parks consisting of medium-Btu gas facilities
with multiple users may come into existence.

     Initially, coal-derived petroleum substitutes will be produced by
plants using indirect liquefaction processes.  These are likely to  be
located in  Region VIII where state-of-the-art technology can use non-caking
coal available in that region.  Gasoline will be the principal  product from
these plants.  Initially, the bulk of this production will be consumed
within the  region.  Any excess may be shipped to the midwest market.
During later years, plants using advanced indirect processes located  in
the East could be supplying industrial areas of New York and New Jersey.
Direct liquefaction facilities are likely to be located primarily  on  the
Illinois, Kentucky, and West Virginia area.  Fuel oil will constitute the
bulk of direct liquefaction supply.  They are likely to be used primarily
in the utility, residential, and commercial sectors.  Since  some of the
heavy fuel  oil products are not suited for pipeline transportation, they
will most likely take advantage of the extensive rail system in the east
and midwest.  Tank trucks will also move large volumes.  Liquefied petro-
leum gas is another product of direct liquefaction plants.   Some of it
meant for the petrochemical industry is likely to be shipped to the Texas
area where  most of the large petrochemical complexes are presently located.
The rest could be consumed in the regions where they are produced.
                                     49

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3.1  LIKELY LOCATION  OF  SYNFUEL  PLANTS

3.1.1  Oil Shale  Plant Location

     The  oil  shale  resource  is widely distributed  in  the  United  States.
However,  initial  commercial  interest  centers  on  the 600  billion  barrels  of
rich resources  in the Green  River  Formation  of Colorado,  Utah,  and  Wyoming
as indicated  in Figure 10.   These  deposits  consist  of marlstones  containing
kerogen,  an organic  substance  from which  oil  can be derived.   Several  oil
shale  projects  are  presently in  different  stages of development  in  Colorado
and Utah,  both  of which  are  within the  jurisdiction of EPA Region VIII.
The anticipated progress  of  these  projects  serves  as  a basis  for  the
development of  the  three  oil  shale scenarios  discussed in Section 2.

     The  maximum  likely  hydrotreated  shale  oil  production rates  in  Colorado
and Utah  for  Scenario II  during  1980-1987,  1988-1992, and 1992-2000 are
given  in  Table  18.

  TABLE  18.   MAXIMUM ANTICIPATED SHALE  OIL  PRODUCTION RATE FOR  SCENARIO  II
    State
                                  Maximum Production  Rate (OOOBPD)
                                  (thousands of barrels per day)
                              1980-1987
1988-1992
1992-2000
Colorado
Utah
49
28
290
120
310
120

3.1.2  Coal  Conversion  Plant  Location

     The  identification of  likely  locations  for commercial  coal  conversion
plants is more  uncertain than for  oil  shale  plants  because  of the compara-
tive incipient  nature of the  commercial  coal  conversion  industry.   It  is
anticipated  that  commercial coal conversion  plants  will  be  dispersed
throughout the  midwestern and eastern states.   Their exact  location  is
likely to be  governed by a  number  of factors,  some  of which are  discussed
in this section.

     The  potential  coal  synfuel  resource in  the U.S.  is  11  trillion  tons.
The coal   resources  most likely to  be used  for  synfuel  production are shown
in Figure 11.   Sixty percent  of this resource  is concentrated in Montana,
Illinois, Wyoming,  Alaska,  and North Dakota.   Twenty three  percent is
located in Colorado, West Virginia,  Pennsylvania, and Kentucky.   A pro-
jected standard size synfuel  plant designed  to produce 50,000 BPD of oil
equivalent synfuel  products will require about 20,000 to 40,000  tons of
coal  per year.  Under average conditions of  conventional  mining  and
                                      50

-------
        .- y *  " " i. ?JL	=A	i   \ XLA^-
           NT.     T -f      VON r • c '« iN-V^l-
        ^_y_V      rwsfvAr
        	\—P*     » it	  —  '*• s—^T '*
        W" /^AN JUAN I  ^""V^f'C
        t—fc/            i-  A r-;  / .1  v-^
 "i          1 ^*
 ^  I        M^
 : c._i.6««if:-   /f5-
   -xA     .A SAN JUAN
	 -i  l^vv
      Vt5
                                                                    EXPLANATION
                                                              Green River Formation conlaining shale
                                                               10 or more feet thick, averaging 25
                                                               or more gallons of oil per ton

                                                            Upper Colorado River drainage basin boundary
                                                                    Federal lease tracts
                                                                        x C-a
                                                                        DC-b
                                                                        0 U-a
                                                                        OU-b
                         I       ^^J  :-£;(
                     	;   SAN JUAN  1>    /
                     '"'"":!  NEW MEXICOJ
                                                  Source:  U.S. Department of Interior/Geological Survey,
                                                          Synthetic Fuels Development:  Earth-Science
                                                          Consideration, GPO, Washington, DC, 1979.
                                                                       "»
                                                                         •i •
                                                                         200
                                                                                      ZOO MILES
                                                                                    _  |
                                                                                    300 KIlOMCUnS
Figure 10.   Oil  Shale  Deposits Most Likely To Be Used  for Synfuel   Production

-------
tn
ro
                                                                              !OS   <00   tOOmOMI'DTj
Source:
                         U.S.  Department of Interior/Geological  Survey,  Synthetic Fuels Development:  Earth-
                         Science  Consideration, GPO, Washington,  DC,  1979.
                                                                                                                      EXPLANATION
                                                                                                                     Coal region* having
                                                                                                                      potential lor synfuel
                                                                                                                      development
                                                                                                                     Other cotl regions
                                                                                                                         No coal
                      Figure  11.   Coal  Resources Most  Likely to  be  Used  for  Synfuel Production

-------
operation, about 12 to 24 million tons of coal reserves will  be  needed  to
supply each plant for one year.  Over the estimated 30-year life  span of  a
plant, between 360 and 720 million tons of coal reserves will  be  required.
In some coal  regions, a substantial  part of the identified resources  is
located in beds that are too thin to meet the present requirements  of
iarge_scale mechanized mining.   Coal quality differs from deposit to
deposit and region to region, and greatly affects the coal's  utility  for
various synfuel  processes.  The caking tendency of coal is particularly
important; first-generation coal conversion technology favors  noncaking
western coal.   These are some of the geologic constraints that govern the
location of coal conversion plants.   Based on the above geologic  con-
straints,  coal  synfuel plants will  most likely be located in  the  following
five EPA regions:  Middle Atlantic (Region III), Southeast (Region  IV),
Great Lakes (Region V), Southwest (Region VI), and Mountain (Region- VIII).
These regions  are indicated in  Figure 12.

     Other factors (References  25, 26, 27, 28) that are likely to influence
the location  are:

          Water availability
          Technology development status
          Proximity to primary  markets
          Existing product distribution systems
          Current government- or industry-funded projects
          Industry interest.

     A weighted average ranking procedure was developed to take  into
account these  factors for locating the coal  synfuel  plants in  the five
chosen EPA regions during different  time periods and for different  produc-
tion scenarios.   For Scenario II, the results are indicated in Table 19.
Coal  conversion plants will initially be concentrated in the  western
states.   As the technology advances, more plants are likely to be located
in the eastern part of the country.

3.2  SYNFUEL  PRODUCT UTILIZATION

     The major synfuel products would essentially replace the  petroleum and
natural  gas products currently  in use.  The products can be grouped into
five broad categories:

     1.    Gaseous Products

               High-Btu gas
               Medium-Btu gas
               Low-Btu gas
               Liquefied petroleum gas (LPG)
                                     53

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en
                 HAWAII
                       Figure 12.   Likely Locations for Synthetic  Fuel  Plants

-------
TABLE 19.   NUMBER OF COAL  CONVERSION PLANTS NEEDED ON-STREAM TO MEET THE
            REQUIREMENTS OF THE NOMINAL  PRODUCTION SCENARIO   SCENARIO II

Process
Indirect Liquefaction
Fischer-Tropsch
Mobil M
Advanced Indirect
Advanced Indirect
Advanced Indirect
Subtotal Indirect
Subtotal Product (10 8PD)
Direct Liquefaction


Subtotal Direct
Subtotal Product (103 BPO)
Total Liquefaction
Total Product (103 BPD)
High-Btu Gasification
Lurgi Fixed-Bed
Lurgi Fixed-Bed
Lurgi Fixed-Bed
Lurgi F]»ed-8ed
Advanced Fluid-Bed
Total High-Btu Gasification
Total Product (10^ BPD)

Low/Medium-Btu Gasification
Lurgi Fixed-Bed
Lurgi Fixed-Bed
Lurgi Fixed-Bed
Texaco Partial Oxidation
Total Low/Mediura-Btu Gasification
Total Product (103 BPD)
Regional Total Products (10^ BPO)
Indirect Liquefaction


Direct Liquefaction


High-Btu


LOM/Mediutn-Btu



Regions

VIII
VIII
IV
III
III


III
IV
V




VIII
VIII
VIII
VI
III




VIII
VIII
VI
IV



VIII
IV
III
III
IV
V
VIII
VI
III
VIII
VI
III

States

North Dakota
Wyoming
Kentucky
Pennsylvania
West Virginia


West Virginia
Kentucky
11 1 inois




North Dakota
Wyoming
Montana
New Mexico
Pennsylvania




North Dakota
Montana
New Mexico
Tennessee















Number of Plants
1980-87 1988-92

1
1
-
-
-
2
100

-
1
1
50
3
150

1 1
1
1
1
-

1 4
42 166


2
1 2
1 2
1 3

3 9
90 270

100
-

_
.
50
42 126
4;
-
30 120
30 60
30 90

on Strear
1993-2000

2
2
3
3
3
i:-
e;o
•
t
4
7
350
2C
1 03:

i
i
i
i
•>

6
25:


3
3
3
6

U
450

200
150
300
50
100
200
126
ir
?-
ISO
90
1?0

    Total US Coal
    Conversion Products (10 BPD)
                                                  132
                                                           5SS
                                    55

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     2.    Light  Distillates

                Gasoline
                Naphtha

     3.    Middle Distillates

                Jet  fuel
                Kerosenes
                Diesel  oil

     4.    Residuals

                Heavy  fuel  oil
                Lubricants
                Wax
                Asphalt

     5.    Petrochemicals

     In  general, the  suppliers interviewed in this study agreed that there
will be  no  discernible or  significant differences in the products produced
from synfuels  compared to  products from petroleum or natural  gas.
According  to the users interviewed, however, it is not clear  that current
specifications  are  sufficient  to guarantee performance and environmental
acceptability.   Of  the synfuel  products being considered, liquid products
derived  from coal,  if  used directly, are perceived as most different from
conventional products  in their composition and toxicity.

3.2.1  Gaseous  Products

     High-Btu  gas offers many  of the advantages of direct coal  usage but
does not  have  some  of  the  environmental drawbacks of burning  coal directly.
It  has the  same  heating value  as natural gas and, therefore,  can substitute
for natural gas  in  almost  all  its applications.  High-Btu gas:

     0     Can  use the  vast coal  resource base in U.S.

     0     Can  use the  extensive  existing pipeline network

     0     Requires  no  modification or adjustment of the equipment of
           conventional  gas consumers

     0     Causes very  little environmental pollution at the point of
           consumption.

     Its larger  application is  likely to be as a heating fuel  in
industrial, commercial,  and residential use.   However, its possible small-
scale use  as a  fuel for internal  combustion engines for stationary and
mobile application  cannot  be ruled out.  The possibility also  exists for
current users of natural  gas for chemical  feedstock to use high-Btu gas
                                      56

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instead, if it is piped to the plant site at competitive  rates.   The
strongest  potential  markets for high-Btu gas are likely to be Midwestern
and Middle Atlantic  regions, primarily as a result of the large  quantities
of oil  consumed in their industrial sectors.

     Medium-Btu gas  offers many of the advantages of high-Btu gas  but  at
lower cost.   It can  be burned in existing natural gas- or oil-fired boilers
with only  minimal  expense for retrofitting.  Transportation of medium-Btu
gas would  require a  dedicated pipeline, but preliminary evaluations have
shown that it  can be pipelined up to 200 miles economically.  Therefore,  it
is possible that a medium-Btu gasification plant could, for environmental
reasons, be located  far from an industrial area and still economically
serve the  area.   Finally, medium-Btu gas is less expensive to produce  than
high-Btu gas because investment in shift and methanation  units is  not
required,  and  the energy losses associated with these process steps are
avoided.  In addition to its utilization as a boiler fuel, medium-Btu  gas
is a potential  source of feedstocks for the chemical industry.   Ammonia and
methanol are now made from CO and hL produced by reforming natural  gas.
These two  basic chemicals have many uses in the manufacture of other more
complex chemicals.

     It appears that high- and medium-Btu gas will be utilized by  major
energy-consuming industries such as food, textile, pulp and paper,  chemi-
cals, and  steel.  Only chemical, petroleum, and steel industries  will
require enough fuel  gas at a single location to economically justify the
dedication of  a single gasification plant.  Other industrial plants will
have to share  the output distributed by pipeline from a central  gasifier  or
tap into existing natural gas pipeline systems for their  need.

     The major characteristics of low-Btu gas are its high nitrogen
content, its low carbon monoxide and hydrogen content, and its resulting
heating value--typically below 150 Btu/Scf.  Because of its high  nitrogen
content and low heating value, it cannot be economically  pipelined  over
long distances.   A plant producing low-Btu gas would, therefore,  have  to  be
located on-site or relatively close to the user.  This constraint  severely
limits  the potential size of low-Btu gas plants and would not typically
allow the  economy of scale that would be gained from large plants  serving
multiple customers.   Low-Btu gas flame temperature is about 13 percent
lower than that of natural gas.  Because of these characteristics,  low-Btu
gas is  limited to on-site use in industrial processes requiring  tempera-
tures below 2800 to  3000°F, and is generally unsuitable for use  as  a chem-
ical  feedstock.   Further, because of its low energy density it requires
significant equipment modifications for retrofit applications.   Today  there
are operating  and planned low-Btu gasifiers in the U.S. for:

     •     Kiln firing of bricks
     •     Iron ore pelletizing
     •     Chemical furnance
     t     Small  boilers.
                                     57

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The three  main  constituents  of LPG are propane,  butane,  and  isobutane.
Propane  is  the  lightest  of the three,  has  the lowest  vaporization  point,
and is the  most abundant.  LPG is liquefied under moderate pressures.   At
60°F butane requires  pressurization of 40  pounds per  square  inch  or more  to
be  liquefied; propane requires 110 pounds  per square  inch or more.   Butane
liquefies  under atmospheric  pressure at 32°F; propane at -44°F.   By con-
trast, natural  gas  will  not  liquefy at atmospheric pressures above -259°F.
Liquefying  the  gas  provides  a  highly efficient and safe  method  of  storing
and transporting the  product:   the fluid occupies only l/270th  the space  of
the gas, which  returns  to  its  natural  state when released to the  atmosphere
under normal  pressure.   LPG  has applications for industrial, domestic,  and
transportation  uses.   Although LPG is  currently  produced either from
natural  gases or crude  oil,.the introduction of  coal-based LPG  is  not
likely to  affect its  use pattern.   For domestic  application, LPG  is used
mainly as  a fuel for  cooking and for water and space  heating.   It  can  also
power refrigerators and  air  conditioners.   LPG is also used  on  farms for
crop drying,  tobacco  curing, defoliation,  and frost protection.   It also
powers trucks,  pumps, standby  generators,  and other farm equipment.
Commercial  establishments  such as hotels,  motels, and restaurants  use  LPG
much as  the homeowner does.   As an engine  fuel,  its minimal  emissions  allow
it  to be used indoors,  which explains  its  wide popularity in fork-lift
trucks.  This same  feature makes it a  desirable  fuel  in  congested  areas for
buses, taxis, and delivery trucks.  In industry, coal-derived LPG  may  find
a large  number  of diverse  uses.   Apart from use  as a  fuel  in processes  that
require  careful  temperature  control  (glass, ceramics, and electronics)  or
clean combustion gases  (drying of milk, coffee,  etc.), LPG is also used in
the metallurgical industry to  produce  protective atmospheres for metal
cutting  and other uses.   The chemical  industry,  particularly on the U.S.
Gulf coast, uses petroleum gases for cracking to ethylene and proplyene as
well as  for manufacturing synthesis  gas.   Another use of LPG is to enrich
lean gas made from  other raw materials to  establish proper heating value
levels.  On a volume  basis,  LPG production in the U.S. exceeds  that of
kerosene and  approaches  that of diesel  fuel.  About 24 percent  of  LPG  pro-
duction  is  used  by  the  chemical  and synthetic rubber  industry,  46  percent
is  used  for residential  and  commercial  use, and  10 percent is used for
automotive  use:   the  remaining LPG is  distributed among  other industrial
and agricultural  fuel  use.   By EPA region, the largest amount of  LPG (0.36
MMBPD) is  at  present  marketed  in Region V.   Currently about  70  percent  of
all  LPG  is  extracted  from  natural  gas  and  30 percent  is  refined  from crude
oil.  With  the  anticipated shortfall  in the supply of these  crudes, the
resulting  shortage  of the LPG  will  be  met  to some extent by  LPG from
synfuel   plants.

3.2.2  Light Distillates

     Gasoline,  a major  light distillate, is generally defined as  a fuel  for
reciprocating,  spark-ignition  internal  combustion engines for automotive
ground vehicles  of  all  types,  reciprocating aircraft  engines, marine
engines,  tractors,  and  lawn  mowers.   Other small-scale uses  include fuel  in
appliances  such  as  field stoves,  heating and lighting units, and  blow
torches.   The primary use of gasoline  produced from coal  will be  for trans-
                                      58

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portation applications.  Currently, U.S. consumption of petroleum-derived
gasoline is almost 6.8 MMBPD, corresponding to about 40 percent of the
total  petroleum consumption.  Most refiners produce and market more  than
one grade of motor gasoline, differing principally in anti-knock quality
and additives.   Refiners also change the volatility properties of their
motor  fuels, depending on the atmospheric temperatures at which the  vehicle
is to  operate.   Winter gasoline is the most volatile and summer gasoline
the least volatile.

     Naphthas serve many industrial and domestic uses.  Their primary
market is the petrochemical  industry where they can be used to manufacture
solvents, varnish, turpentines, rust-proofing compounds, Pharmaceuticals,
pesticides, herbicides, and  fungicides.  However, preliminary analyses
indicate chat a relatively small  amount of coal-derived naphthas will enter
the market.

3.2.3   Middle Distillates

     The markets for middle  disti 1 lates--essential ly jet fuel, kerosene,
diesel oil, and heating oil — are jet aircraft, gas turbines, and diesel
engines used for transportation and stationary applications, and resi-
dential  and commercial  heating.  The major use of distillate fuel in the
United States is for central home heating.  The distillate heating oil
generally falls in the No. 2 classification of the industry's commercial
standards and is known as No. 2 fuel oil, as well as by various individual
company brand names.  Heating oils include petroleum cuts boiling from
about  350 to 650°F.   They are very much like diesel fuels and, in fact, in
some areas these products are interchangeable.  Kerosene is another  product
used for such applications as cooking and sometimes is referred to as No.  1
fuel  oil  or range oil.   Its  major advantage over heating oil is that it has
a much lower tendency to form carbon deposits.  With the introduction of
synfuels into the market place it is anticipated that products comparable
to those will be derived from petroleum.

3.2.4   Residuals

     The market for residuals, consisting mainly of fuel oil, is primarily
for industrial, utility, and marine fuel.  Fuel oil meeting the specifi-
cations of Nos. 4, 5, and 6  fuel  oil will come under this category.
Currently, petroleum-derived No.  6 fuel oil is probably the most widely
used residual product for industrial and utility fuel.  Other applications
for residuals include preparation of industrial and automotive lubricants,
metallurgical oils, roof coatings, and wood preservative oils.  Coke is
another likely  useful  product from residue.  Wax from synfuel liquid
residue is likely to be used for manufacturing sanitary containers,  waxed
food wrappers,  candles, drugs, cosmetics, rubber, textiles, adhesives,
crayons, polishes, and paint removers.
                                     59

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3.2.5  Petrochemical  Feedstocks  and  Other  By-Products

     In addition  to  their  primary  use  as  fuel,  many  synfuel  products  are
likely to  be  used  by the petrochemical  industry as  feedstocks  for  the
production of  petrochemicals  and other byproducts.   More  than  3000 petro-
chemicals  and  byproducts are  now derived  from  petroleum  and  natural  gas-
based feedstocks.  These include the primary  petrochemicals  such as
ethylene,  propylene, benzene, toluene, xylene  (B-T-X group), and butadiene.
Other petrochemical  derivatives  include synthetic  fibers,  plastics,  rubber,
detergents, solvents, sulfur, ammonia, fertilizers,  pesticides, and carbon
black.  A  small percentage of these  petrochemicals  and other byproducts
will be displaced  by feedstocks  produced  from  synfuel s entering the
marketplace.

     The primary  feedstocks  for  petrochemicals  and  other  products  are
likely to  be  produced from three synfuel  feedstock  sources:  naphtha,
medium-Btu gas  (synthesis  gas),  and  liquid petroleum gas  (LPG).  Direct
coal liquefaction  will  be  a major  source  of naphtha.   Naphtha  may  also be
produced as a  byproduct of some  coal  gasification  processes, for example,
the Lurgi  gasifier.   Medium-Btu  gas  (synthesis  gas)  will  be  used to produce
ethane, propane,  and butane,  which in  turn are  used  as feedstock for  the
production of  petrochemicals  and other byproducts.   It is  expected that
about 50 to 75  percent  of  the medium-Btu  gas will  be used  by the petro-
chemical industry, with the  remainder  used for  other industrial applica-
tions.  The use of LPG  offers another  source  for petrochemicals and other
byproducts feedstocks.  About 24 percent  of the LPG  produced from  synfuels
will be used  by the  petrochemical  industry, while  the  remaining 76 percent
will be used by other industries and as an automobile  fuel.  In addition,
some of the other  major synfuel  products,  for  example, SNG,  syncrude, and
methyl fuels,  could  be  used  to some  extent for  petrochemical feedstocks.
However, because  it  is  expected  that these products  will  be  used primarily
to displace current  oil and  natural  gas now servicing  transportation,
residential,  commercial, utilities,  and industrial  sectors,  only a small
portion, if any,  will  be used as feedstocks.

     Naphthas  may  be used  in  many  industrial  and domestic  applications.   In
addition to their  primary  use as feedstock for  primary petrochemicals, they
can be used to  manufacture other byproducts such as  solvents,  varnish, tur-
pentines,  rust-proofing compounds, Pharmaceuticals,  and  pesticides.   To
further assess  the utilization of  petrochemical  feedstocks and other
byproducts, naphtha  is  discussed in  terms  of  one of  its major  derivatives,
benzene.  More  data  are available  for  benzene  than  for the other five
primary petrochemicals, which are  discussed in  Appendix  D.

     Based on  current  geographical  utilization  trends, the Gulf Coastal
states,  Region VI, and  the Great Lakes states,  Region  V,  will  be the  major
consumers of the  primary petrochemicals and their  derivatives  produced from
synthetic feedstocks.   Region VI will  consume  about  82 percent of  the total
benzene produced.  Also, it  is expected that  this  region  will  use  80
percent  or more of all  the  feedstocks  produced  nationally  to manufacture
petrochemicals and other byproducts.   The  Great Lakes  region is expected to
                                      60

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 be  the next largest consumer, using 4  percent.   Detailed  regional  consump-
 tion in terms of relative quantities of  petrochemicals  and  other byproducts
 is  discussed in Section 3.3.

 3.3  REGIONAL MARKET PENETRATION OF SYNFUEL  PRODUCTS

     Oil shale-derived synfuels will be  introduced  into the petroleum
 market by about 1985, and, based on Scenarios  I  and  II, as  much  as 0.08 to
 0.2 MMBPD of shale oil can enter the market  by 1987.   The refined shale oil
 products will primarily serve the needs  of transportation sectors.   Around
 1987, according to the nominal scenario,  about  one  high-Btu gasification
 plant will  be on-stream supplying 0.04 MMBPD of  synthetic natural  gas to
 the natural gas pipeline system.  By this time  two  or  three medium-Btu
 gasification plants may also be constructed  but  will be operated in a
 captive mode, possibly by chemical  industries.   The  commercial  effect of
 coal liquefaction technology will not  be  felt  until  1992, according to
 Scenario II.  Around that time, it  is  expected  that  two indirect lique-
 faction plants and one direct liquefaction plant may come on line.   They
 will be supplying the transportation,  industrial, utility,  commercial, and
 residential markets.  However, the  true  effect  of coal  liquefaction in the
 marketplace will not be felt until  the 1993-2000 time  period, when up  to 1
 MMBPD of coal-derived liquid products  will be  entering  the  market.   The
 likely use pattern of synfuel from  different sources is indicated in Figure
 13.  As much as possible, synfuels  are likely  to be  utilized within or near
 the region where they are produced.  For the purpose of this study,
 regional classification of the continental United States  is based on EPA
 region.  It is also assumed that, as much as possible,  synfuels  will use
 existing modes of transportation; no new pipelines  are  likely to be built
 for transporting synfuels, except for  some feeder lines.

     One likely regional build-up of coal conversion plants for  Scenario II
 was indicated earlier in Table 19.  This will  form  the  basis for discussing
 the movement and utilization of coal based synfuel  products in our
 subsequent discussions.

 3.3.1   Shale Oil

     Oil  shale-derived synfuels will be  introduced into the  petroleum
 product  market  around 1985,  and,  based  on Scenario II (the  nominal
 scenario),  up to 80,000  BPD  of shale oil  will be  produced in  the  Colorado-
 Utah region by  1987.   Initially,  it  is  expected  that the  hydrotreated shale
 oil  will  be refined  in the Rocky  Mountain area either separately  or as a
 blend.   Assuming that the  hydrocracking  refining  process, which  is  likely
 to yield products  that are most desirable, is used, we  can  expect  up to
 57,000  BPD  of middle  distillates,  13,000 BPD of  gasoline, and 7,000 BPD of
 residuals  to enter  the market.   It is  very likely that  the  refined  prod-
 ucts, which consist  mainly of middle distillates, will   be entirely  absorbed
by the  transportation sector of the  Rocky Mountain Area,  Region  VIII.   This
 region  is  currently  a net  importer of  refined transportation  fuel.   One
major  customer  is  likely to  be the Department of Defense  (DOD).
Approximately 90 percent of  DOD's current total  consumption  of 413,000 BPD
 is mobility fuel.   Two Air Force  bases  in the West   Mountain Home AFB in
                                     61

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cr>
r\j
                                                                        MAJOR SVNFUEL PRODUCTS/
                                                                               BY-PRODUCTS
                                                                                                                                     TRANSPORTATION
                                                                                                                                          SECTOR
                                                           Indirect Cot
                                                                 10f»
                                                             Products
                                                                                                      Dlrtcl
                                                                                                      Liquefaction
                                                                                                       Products
Catl Uilflcltlon
   Product!
                                                              • Uiollnt
                                                              • Ktddlt
                                                                   iut»
                                                                e.g.. J*t
                                                                FlMl.
                                                                Oltiel.
                                                                       • Nlddlt DUcllliui
                                                                        (« 9 . Jet Fu«l,
                                                                        Dteitl . M
              • ntddU
               OUtlllltii
               (1.9-.
               Fu.1.
               OKtel.
               uroscnt)
              • SNG
     COAL
GASIFICATIONS
                                                                         t.g . H»rln«
                                                                        Fuili. LubrUtntl)
                                                                       • (Uphtni
                                                                       I LfO
                                   light FMI oil)
                                  • ten duals
                                   («.g . Ktrint
                                   Fu.li.
                                   LubrUlntt )

                                                                                                                                        INDUSTRIAL
                                                                                                                                         SECTOR
                                                                                                                                       COMMERCIAL
                                                                                                                                      • RESIDENTIAL
                                                                                                                                         SECTOR
   COAL
LIQUEFACTION
 (DIRECT
 INDIRECT
 PROCESSES)
                                                            NOTE:
                                     Penetration of Sh.le 011 Into the  Utilities .nd
                                     ind Resldenttsl sector Is expected to be minimal and
                                     therefore not highlighted
                                                     Figure  13.    Synfuel  Utilization  During  1985-2000

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Idaho and Hill  AFB in Utah   plan to switch to 100 percent  consumption  of
synthetic aviation turbine fuel derived from shale oil.   Their  near-term
requirement is  likely to be 5,000 to 10,000 BPD for their aircraft  testing
program.   The residual that is produced is likely to be used  within EPA
Region VIII as  boiler fuel in the industrial or utility sector.   In view of
the small quantity of this initial supply, the residual may possibly be
blended with petroleum-derived fuel  oil.  Most of the  petroleum  products
will  be transported by trucks within the region from the  refineries.

     The shale  oil use pattern for Scenarios I and III is not likely to be
different during this time period.  However, total quantity is  likely to be
as high as 0.3  MMBPD.  During the 1988-92 time period, the  quantities of
shale oil produced are likely to increase substantially.  For Scenario  III,
production could be as high as 0.75 MMBPD.  However, the  nominal  scenario
projects a production rate of only 0.40 MMBPD.   During this period,  hydro-
treated shale oil  is likely to be transported to the upper  Midwest  for
refining.  According to interviews with potential suppliers (Appendix A),
there is currently about 0.2 MMBPD open refinery capacity near  Chicago,
St.  Louis, and  Detroit.  It is assumed that about 0.2  MMBPD of  hydrotreated
shale oil could be supplied to the upper Midwest, which essentially belongs
to EPA Region V and constitutes a major section of Petroleum Administration
for Defense District 2 (PADD2) as well.  In Region V there  is also  a  heavy
demand for transportation fuel, and shale oil-derived  fuel  will  be  used
primarily by the transportation sector.  This quantity could  be  as  high as
0.2 MMBPD.  The residuals, which could amount to 0.03  MMBPD, will be  used
primarily by the industrial and utility sectors in the region as  boiler
fuel.

     The demand for transportation fuels during the late  1980's  is  expected
to be about 10  MMBPD.  Of this, about three to five percent is  likely to
consumed by the military sector.  A large amount of shale oil products
could be utilized by the military, possibly with a government synfuel pur-
chase guarantee program.  It is possible, therefore, that during  this time
period, about 10 percent of the 200,000 BPD of refined shale oil  products
marketed in EPA Region VIII will be supplied to the military, including the
two Air Force bases   Mountain Home AFB in Idaho and Hill AFB in  Utah.   The
remaining will  be consumed by the civilian sector.  The use pattern of
shale oil during 1993-2000 is not likely to be different.

3.3.2  Coal Gas

3.3.2.1  High-Btu Gas

     The national  goals scenario  (Scenario I) projects that 0.5  MMBPD of
oil  equivalent  gas production could be achieved by 1992.  A more  realistic
scenario that considers impediments to the build-up of high-Btu  gas (HBG)
production is described by the nominal production scenario, which predicts
only 0.17 MMBPD of gas by 1992.  An accelerated production  schedule of
1  MMBPD by 2000 occurs with Scenario III.  For the purpose  of discussing
the market penetration of HBG, Scenario II is used as  a base  case.
                                     63

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     The  largest  and  earliest  adoption  of high-Btu  gas  production  will
©ccur in  Region VIII  (Colorado,  Montana,  North  Dakota,  South  Dakota,  Utah,
and Wyoming).   Initially,  one  0.04-MMBPD  capacity plant will  come  on  line
in North  Dakota during  1980-1987.   Construction is  now  underway  in North
Dakota  on  the  Great  Plains Gasification project.   The project is to be
completed  in two  phases:   the  first phase (0.02 MMBPD)  is  scheduled for
completion  in  1984,  at  which  time  construction  on the second  phase (0.02
MMBPD)  will  begin.   HBG from  the Great  Plains  project will  enter markets  in
Region  V  (Illinois,  Indiana,  Michigan,  Minnesota, Ohio, and Wisconsin)
through the  addition  of a  365-mile, 20-inch  SNG pipeline.   The largest
end use of  natural  gas  in  Region V is for space heating.   Space  heating
will consume 60 percent (0.024 MMBPD) of  the HBG and an additional 39
percent (0.0156 MMBPD)  will  be used by  the industrial sector  (Table D-9,
Appendix  D).   The major industrial  natural  gas  consumers  by sales  for this
area are:   (1)  primary  iron and steel;  (2) service industry;  (3) fabricated
metal products;  (4)  chemicals  and  allied  products;  and  (5)  the food
industry.   Extensive  storage  facilities are  located throughout Region V,
with 2,760  billion  cubic  feet  of storage  space  (Table D-8,  Appendix D).
Additionally,  HBG supplied from North Dakota into Region  V will  remain  at
0.04 MMBPD  for  all  three  time  periods.

     During  1988-92,  two  additional 0.04  MMBPD  HBG plants  will  come on  line
in Region  VIII.   One  will  be  located in Montana and the other in Wyoming.
Current indications  are that  this  0.08  MMBPD will be used  within the  Region
VIII natural gas  distribution  network;  however, significant amounts of  the
HBG production may  reach  markets in Region VII  (Iowa, Kansas, Missouri, and
Nebraska)  through the addition of  the northern  border pipeline.  Pipeline
construction is scheduled  to  begin in 1981.   HBG production may  also  reach
Region  VII  via a  pipeline  system to the midwest owned by  the  participants
in the  Wycoal  project.   The Wycoal  project has  requested  funds from DOE to
construct  a  facility  that  would use Lurgi and  Texaco gasification  units.
Gas from  these  units  in Region VII would  be  used primarily for space
heating by  the  residential  and commercial sectors which consume  50 percent
of Region  VII's natural  gas (see Table  D-9,  Appendix D).   Industrial  use
amounts to  31  percent of  the  total  consumption, with the  largest consumers
in the  area  by  sales  as follows:  (1) electric  utility; (2) chemicals;  (3)
food and  kindred  products;  (4) primary  iron  and steel;  and (5)  carbon black
(Table  D-10).  Consumption within  Region  VIII would be  for space heating  by
the residential and  commercial sectors, which currently consume  54 percent
of total  natural  gas  consumption (Table D-9).   The five largest  industrial
users by  sales  for  the  region  are:   (1) electric utility;  (2) petroleum
refining;  (3)  food  and  kindred products;  (4) chemicals; and (5)  services
(Table D-10).  Additionally,  the Crow Indians  have requested  funds from DOE
for a feasibility study of a  HBG facility to be located near  Billings,
Montana.

     Region  VI  (Arkansas,  Louisiana, New  Mexico, Oklahoma, and Texas) will
be producing 0.04 MMBPD of HBG for the  periods  1988-92  and 1993-2000; no
production  is  scheduled for 1980-87.  At  present, New Mexico  produces and
markets five times more natural  gas than  it  consumes.  The bulk  of New
Mexico natural gas  enters  markets  in Region  IX  (Arizona,  California,  and
                                      64

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Nevada).   The average daily flow from New Mexico into Region  IX is 0.64
MMBPD (4000 MMCFD).   Therefore, HBG consumption may occur in  New Mexico  or
Region IX.   The greatest consumption of natural gas in New Mexico, 35
percent,  is for industrial  service (Table D-9) of which electric utility
service is  the largest consumer.  Forty seven percent of the  natural gas
consumed  in Region IX is for space heating in residential and commercial
sectors (Table D-9).   Industrial use is the next largest consumer, using 30
percent of  the total  market consumption (Table D-9).

     For  Region III,  two advanced fluid-bed gasifiers are expected to be
built in  Pennsylvania.   Production will  total 0.08 MMBPD from these two
plants during 1993-2000.  No HBG production is expected in Region III
during 1980-87 or 1988-92.   Consumption of the HBG will  occur entirely
within the  Pennsylvania natural gas system.  According to Table D-9, almost
59 percent  (0.0472 MMBPD)  of the total  0.08 MMBPD HBG would be consumed  by
the residential  and commercial  sectors  for space heating.  Another 37
percent (0.0296 MMBPD) would be consumed by the industrial sector.  The
five largest industrial  users of natural gas by sales for the middle
atlantic  states (New  Jersey, New York,  and Pennsylvania) are:  (1) primary
iron and  steel;  (2) glass  products; (3) fabricated metal products; (4)
chemicals,  and (5) manufacturing.  Current information (Table D-9) indi-
cates that  storage facilities in Pennsylvania are used at capacity levels;
consequently,  HBG production would be displacing current natural  gas sup-
plies from  production fields in the southern U.S.  Pennsylvania's ultimate
reservoir capacity is 800  billion cubic feet.

     The  preceeding analysis was concerned with the most likely production
build-up  of HBG production   Scenario II.   Scenarios I and III are more
optimistic  in  their predictions of HBG build-up.  The siting,
transportation routes, and end-use patterns in Scenarios I and III are
similar to  Scenario II.

     Scenario I sites HBG  facilities in Regions III and VIII.  For 1980-87,
seven plants (0.28 MMBPD)  are scheduled to come on line in Region VIII.
Eleven plants (0.44 MMBPD) will be in operation during 1988-92 and
1993-2000.   No HBG production is scheduled in Region III for  1980-87, but
one (0.04 MMBPD) plant is  scheduled for 1988-92 and 1993-2000.  End-use
consumption will remain the same.

     Scenario III sites HBG facilities in Regions III and VIII.  Region
VIII production is the same as  for Scenario I (0.28 MMBPD in  1980-87, 0.44
MMBPD in  1988-92) except for 1993-2000.  Production will then increase to
0.64 MMBPD  from 16 plants.   Region III  is also the same for 1980-87, no
production  is scheduled; 0.04 MMBPD is planned for 1988-1992; and
production  will  increase to 0.32 MMBPD from 8 plants in 1993-2000.

3-3.2.2  Low-/Hedium Dtu Gas

     Scenario II sites medium-Btu gasification facilities in  EPA  regions
IV, VI, and VIII.  For 1980-87, approximately 0.09 MMBPD of MBG is sched-
uled for  production.   Likely locations are Tennessee, New Mexico, and
                                     65

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Montana.  The medium-Btu  gas  could  be  used  as  a  synthesis  gas  for  producing
chemical products  such  as  ammonia,  which  in  turn  could  be  used  to  manufac-
ture such products  as  fertilizers,  fiber  and plastic  intermediates,  and
explosives.  During  this  time it  is  likely  that  one or  two of  these  plants
could be producing  methanol  as  well.   The plant  might be owned  by  an indus-
trial company primarily to serve  its  internal  needs,  which could be  to
produce methanol  or  formaldehyde, a  product  with  a number  of end-use
applications.   Some  of  the methanol  produced during this time  period could
possibly be  utilized by organizations  like  EPRI  to test its usefulness as a
turbine fuel.   Interested  organizations  could  test it for  automobile use
also, but it is  unlikely  that methanol  from  these plants would  enter the
open market  directly on a  large scale  for public  consumption.   One reason
is the  lack  of  a suitable  marketing  infrastructure.   This  fact  was rein-
forced  in the course of interviews  conducted as  part  of this study.   In  any
case, not more  than  40  percent  of medium-Btu gas  production in  the country
is likely to be  converted  to  methanol.   The  most  likely users  of medium-Btu
gas will be  the  chemical,  steel,  and  primary metal industries.  Chemical
industry use would  be  primarily as  a  feedstock;  steel industry  use would be
primarily for blast  furnace injection;  and  primary metal use would include
annealing operations and  burner application.  For 1988-92  and  1993-2000,
the medium-Btu  gas  production could  be  0.27  MMBPD and 0.45 MMBPD respec-
tively.  During  these  periods,  industrial  parks  consisting of  medium-Btu
gas facilities  with  multiple  users  may  come  into  existence.

     During  the  different  time  periods,  the  use  of low-Btu gas  will  be
limited to  industrial  fuel  in such  applications  as kilns,  chemical  fur-
naces,  and  small  boilers.   Currently  there  are about  15 to 20  facilities in
the U.S. that use,  or  are  in  the  process  of  beginning to use,  low-Btu gas
for applications such  as  brick  kilns,  chemical furnaces, space  heating,  and
metal-process furnaces.  The  operators  of these  facilities include General
Motors  Corporation,  Caterpillar Tractors,  and  Dow Chemical Company.   By
1980-87 the  number  of  low-Btu facilities  may be  about 35,  increasing to
about 45 by  1992.   During  1988-92,  the  use  of  low-Btu gasification by
utilities in one or  two demonstration  units  for  combined cycle  application
cannot  be ruled  out.

     Scenario II is  much  more optimistic  about the use  of  low-/medium-Btu
gas for different  applications  than  is  Scenario  I.  The Scenario  II
projection  for  low-/medium-Btu  gas  by  2000  is  0.45 MMBPD,  compared to 0.3
MMBPD projected  in  Scenario I.

3.3.3   Coal  Liquefaction  Products

      A synfuel   production  build-up  in  line  with  national  goals, as
proposed by  the  Synthetic  Fuels Corporation, calls for  a preliminary goal
of 0.5 MMBPD by  1987 and  2 MMBPD by  1992.   But realization of  this goal  is
contingent on adequate  federal  funding;  availability  of material,  equipment,
and labor; and  smooth  environmental  permitting.   Presently the  Fischer-
Tropsch process  is  the  only commercially  demonstrated   coal liquefaction
process, with the Mobil-M  process ready  for  full-scale  production  within
the next five years.   In  recognition  of  the  current state  of the art,
                                      66

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perhaps  a more  realistic leadtime and subsequent build-up of coal
liquefaction  plants  is  embodied in a scenario that projects no large-scale
liquefaction  plants  until  1992.  This nominal production scenario projects
a yield  of 1  MMBPD by the  year 2000.

     This section  investigates the direct and indirect coal liquefaction
facilities as projected, primarily, under Scenario II.  The emphasis here
is on the movement of coal  liquid crude or final products from liquefaction
plants to markets.   Direct  and indirect liquefaction are treated separately
because  of their different  products and projected geographic locations.
Based on likely plant sitings  for Scenario II, the quantities of different
coal  liquid products that  are  likely to be produced in different EPA
regions  are indicated in Table 20.  In addition to these products, the
Fischer-Tropsch process is  likely to produce phenol and tar oil products as
well, which may be as much  as  50 and 35 percent respectively by volume of
gasoline production.

3.3.3.1   Indirect  Coal  Liquefaction Products

     Based on the  plant build-up schedule, the nominal scenario (Scenario
II) projects  two  indirect  liquefaction plants by 1992 and 13 by the year
2000.  North  Dakota  and Wyoming could be the first to actually produce,
with  Kentucky,  Pennsylvania, and West Virginia surpassing western
production by the  turn  of  the  century.

     SNG and  gasoline constitute the bulk of indirect liquefaction
products.   Depending upon  the  location of individual plants, pipelines may
be used  to ship these products.

     EPA Region VIII, North Dakota and Wyoming, is expected to be the
location of initial  commercial production of coal liquids using primarily
the Fischer-Tropsch  and Mobil-M processes.  Using 1978 consumption as  a
reference point  for  the use of gasoline and natural gas, it appears that
coal  liquefaction  products will satisfy only a part of local regional
demand.   Currently,  natural  gas is used primarily in the residential  (32
percent) and  industrial (37 percent) sectors.  SNG from indirect coal
liquefaction  will  most  likely  help satisfy this local regional demand.   SNG
will  move to  areas of demand through the existing and proposed pipeline
network.  Pipelines  in  the vicinity of proposed plants for EPA region  VIII
are:

    Plant Location           Existing and Proposed Pipelines  (Ref. 30)

    North Dakota              Montana-Dakotas Utilities Co.  (existing)
                             Northern Border Pipeline Co.  (proposed,  1981)
                             Pipeline from Great Plains Project  (proposed)
                                (Ref. 29)
                                     67

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TABLE 20.  TYPES AND QUANTITIES  OF  COAL  CONVERSION  PRODUCTS
           PRODUCED FROM  PLANTS  ON  STREAM  FOR THE NOMINAL PRODUCTION
           SCENARIO    SCENARIO  II
Process/Products
Indirect Liquefaction
Fischer-Tropsch
SNG
Gasoline
LPG
Diesel Fuel
Residues
Mobil-M
Gasoline
Advanced Indirect
Gasoline
Advanced Indirect
Gasoline
Advanced Indirect
Subtotal Products
Direct Liquefaction
Naphtha
Middle Distillates
Residues
LPG
Naphtha
Middle Distillates
Residues
LPG

Naphtha
Middle Distillates
Residues
LPG
Subtotal Products
Total Products
High-Btu Gasification
Lurgt Fued-Bed
SNG
Lurqi Fixed-Bed
SNG
Lurgi Fixed-Bed
SNG
Lurgi Fixed-Bed
SNG
Advanced Fluid-Bed
SNG
Total Product
Low/Medium-Btu Gasification
Lurgi Fued-Bed
Medium-Btu
Lurgi Fixed-Bed
Medium-Btu
Regions States

VII North Dakota
VIII Wyoming

IV Kentucky

III Pennsylvania

III West Virginia
III West Virginia
IV Kentucky
V Illinois


VIII North Dakota
VIII Wyoming
VIII Montana
VI New Mexico
III Pennsylvania

VIII North Dakota
VIII Montana
Products Produced (ID3
1980-87 1988-92

32.60
14.50
0.10
2 50
0.70

50.00

--


;
100 00
-


15.40
18 70
10.00
5.90
50.00
150.00

42.00 42 00
42 00
42 00
42.00

42.00 168 00

60.00
30 00 60 00
BPD)*
1993-2000

65 20
29.00
0.20
5 00
1.40

100 00

150 00

150 00
150 00
650 00
15 40
18 70
10 00
5 90
30 80
37 40
20.00
11.80

61.60
74 80
40 00
26.60
350.00
100U 00

42.00
42 OU
42 00
42 OU
82 Ou
252.00

90 00
9U UO
                                                         (continued)
                                   68

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                           TABLE  20.   (CONTINUED)
Process/Products Regions States
Luroi Fixed-Bed VI New Mexico
Medium-Btu
Texaco Partial Oxidation IV Tennessee
Mediuro-Btu
Total Product
Regional Total Products
SNG VIII
Mediuro-Btu
LPG
Gasol me
Middle Distillates (Diesel)
Residues
Subtotal Products
sr.G VI
Medium-Btu
Subtotal Products
LPG V
Middle Distillates
Residues
Naphtha
Subtotal Products
Medium-Btu IV
Gasol me
LPG
Middle Distillates
Residues
Naphtha
Subtotal Products
SNG III
Gasol me
LPG
Middle Distillates
Residues
Naphtha
Subtotal Products
lotal U.S. Coal
Conversion Products
Products Produced (10J
1980-87 1988-92

30 00 60.00

30.00 90.00
90.00 270.00

42.00 158.60
30.00 120.00
0.10
64.50
2.50
0.70
72.00 346 00
42 . OC
30.00 60.00
30.00 102.00
5 90
18.70
10.00
15.40
SO 00
30.00 90.00
_
.
_

-
30.00 90.00








132.00 S88.00
BPO)*
1993-2000

90.00

180.00
450.00

191.20
180.00
0.20
129.00
5.00
1 .40
506.00
c:.oo
9C . 00
132 00
23.60
74.60
40. OC
61 .60
200 00
18C 0"
15C.OO
11.60
37.40
20.00
30.60
430 OC
84.00
300.0:
5 90
16 70
10.00
15.40
434 00

1702.00
•Sums may not equal  totals due to rounding off
                                          69

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     Wyoming                  Montana-Dakotas Utilities
                              Colorado Interstate Gas Co.
                              Northern Utilities, Inc., Wyoming
                              McCulloch Interstate Gas Corp.
                              Kansas-Nebraska Natural Gas Co.
                              Wyoming Interstate Natural Gas System
                                (proposed)


      In  general, gas flows from Montana into North Dakota; therefore plants
 located  in  North Dakota could help satisfy state-wide demand.  Gas extrac-
 ted  in  Wyoming flows into surrounding states, primarily Utah and Colorado.
 Gasoline and other middle-distillate products from indirect coal lique-
 faction  will  be used primarily by the transportation sector.  Facilities to
 move the other liquefaction products are not quite as accessible as the gas
 pipelines.   As of December 31, 1978, there was no sizeable petroleum prod-
 uct  pipeline capacity from North Dakota to other points (Reference 30).
 For  coal  liquids that require refining, two crude pipelines move out of
 North Dakota, one terminating in the middle of the state and one flowing as
 far  as  Chicago.   If marketable products are produced at the liquefaction
 site, the plants should be located close to markets or new pipelines should
 be brought  on line.   Based on 1978 consumption patterns, gasoline from
 liquefaction plants in Region VIII could satisfy about one fourth of the
 current  regional  consumption.   Data on movements across Petroleum
 Administration for Defense Districts (PADD's) indicate that the Rocky
 Mountain  area receives petroleum products via pipeline almost solely from
 the  Mid-Continent Area (PADD-2) (Reference 31).   First-quarter 1978 statis-
 tics estimate about 68,000 BPD of light petroleum products (Reference 32).
 According to Scenario II, indirect liquefaction  plants in Wyoming may be
 producing 50,000 BPD of gasoline by 1992.

     Should Wyoming gasoline consumption double  by 1992, the coal
 liquefaction  gasoline could still  satisfy all statewide demand,  as shown
 below.

     States in EPA VIII                OOOBPD Gasoline Consumption (Ref. 33)a


     Colorado                                         103.2
     Montana                                            35.8
     North  Dakota                                      30.3
     South  Dakota                                      32.0
     Utah                                               49.0
     Wyoming                                            24.2

     aAnnual  figures  reduced  to daily consumption (divided by 365).

     Should  there be  sufficient production to satisfy state-wide demand,
excess gasoline  could be  shipped  to Colorado and Utah and on to  other
markets.  Petroleum  product pipelines from Wyoming are listed below:
                                      70

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                                                            (OOOBPD)(Ref.  34)a
 Company                      Point to Point                     Capacity


 Pioneer       Sinclair, Wyoming to Salt Lake City,  Utah        32
 Sinclair      Sinclair, Wyoming to Denver, Colorado            14
 Wyoming       Casper, Wyoming to Rapid City, South  Dakota     _9_

                   Total                                       55

     aAnnual figures reduced to daily consumption  (divided  by  365).


     Although product pipelines exist in this area, the total  existing
 capacity would be required to handle the anticipated 1992 gasoline
 production.

     The nominal  scenario projects a doubling of capacity from  1992-2000,
 using the same processes in North Dakota and Wyoming.  In the  same period,
 advanced indirect plants in Pennsylvania, West Virginia, and Kentucky are
 projected to come on line and surpass western production with  150 MBPD  in
 each state.  The primary product anticipated from the advanced  indirect
 liquefaction facilities is gasoline.   The 1978 gasoline consumption  figures
 for EPA regions _LL and III are:

 EPA Region                   State                          (OOOBPD)(Ref. 33)

   II                        New Jersey                         22
                             New York                           403
   III                        Delaware                           20
                             District of Columbia               14
                             Maryland                           133
                             Pennsylvania                       393
                             Virginia                           186
                             West Virginia                      59


     Data on cross-PAD district movements indicate  that more gasoline flows
 into PAD district I  (Eastern Seaboard) than flows out.  Figures for
 November 1979 put gasoline inflow at 1,117 MBPD and outflow at  151 MBPD
 (Reference 30).   Should gasoline consumption remain the same,  the projected
 gasoline from coal  liquids of 450 MBPD by 2000 could displace  one-third of
 the gasoline demand.  While the largest product pipeline in the nation
moves products from  the Gulf coast to the population and industrial  centers
of the  east, it completely bypasses Kentucky and West Virginia.   In  fact,
these two states, projected to be prime coal liquids producers, have no
major product pipeline and only limited crude facilities.   Pennsylvania,
another projected producer, has a number of pipelines running  through it
but all  are in an east-west orientation.  Besides displacing gasoline moved
 into the region by pipeline, the liquefaction products could displace
water-shipped gasoline.   From November 1979 statistics, it  appears that
                                     71

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gasoline constitutes about  50  percent  of  the  petroleum  products moved  over
water.  Eastern  indirect  coal  liquefaction  (450,000 BPD)  could displace
much of that  shipped via  tanker  and  barge.

     By 1993-2000,  pipelines may be  built to  transport  gasoline from
liquefaction  plants to  consuming centers  such as  Pittsburgh.   From
Pittsburgh, final  products  could be  incorporated  into the existing  network
and moved  farther  east  to the  industrial  areas of New York and New  Jersey.
Liquefaction  plants in  Pennsylvania  have  relatively easier access to
refineries and  product  pipelines.   Should refining be required, refineries
operate in the  Lake Erie  area  and  the  Philadelphia area,  although excess
capacity is questionable.  Products  could be  incorporated into the  movement
via the Great Lakes to  consumers from  Erie  or via pipeline from
Philadelphia  to eastern consumers.

     From  existing  storage  capacity  and  inventory data  for crude  oil  and
petroleum  products, as  well  as from  plans for new construction of storage
capacity,  it  appears that in the areas projected  for coal  liquefaction
plants there  should not be  any problem storing liquefaction products.

3.3.3.2  Direct  Coal Liquefaction  Products--

     The nominal  scenario projects  direct liquefaction  facilities primarily
in the Illinois,  Kentucky,  and West  Virginia  region.  A product slate
consisting of naphtha,  middle  distillate, residual  fuel  oil,  and  LPG  is
anticipated.  Should the  coal  liquids  from  the plants require refining,
sufficient crude  pipelines  move through  Illinois  to  refineries in northern
Illinois.  If the  light products from  the direct  process  are  available at
the point  of  liquefaction,  numerous  product pipelines also move through
Illinois to the north  (Chicago)  and  east  (Ohio and Pennsylvania).   These
pipelines  (Reference 34)  are listed  below:
Type

Crude
Crude
Crude

Crude
Crude
Crude
Product

Product
Product

Product
Product
Company

Explorer
Marathon
Texas Cities
Service
Chicap
Marathon
Sohio
Explorer,
Phil 1ips
Marathon
Marathon,
Buckeye
Sun
Ashland
Point to Point

Wood River, 111
Wood River, 111
Bluff City, 111
to Chicago, 111.
to Bluff City. Ill
to Chicago, 111.
Bluff City, 111. to Chicago, 111.
Bluff City, 111. to Lima, Ohio
Bluff City, 111. to Lima, Ohio
Wood River 111. to Chicago, 111.

Wood River, 111. to Chicago, 111.
Wood River, 111. to Chicago, 111.

Akron, Ohio to Pittsburgh, Pa.
Canton, Ohio to Pittsburgh, Pa.
Capacity
(OOOBPD)

  290
  315
  161

  490
  315
   26
  327

   90
   48

   45
   30
                                      72

-------
     Although pipelines exist in this area, they carry mainly petroleum
crude and products  from the Gulf Coast area.  Pipeline availability  and
refinery capacity are questionable.

     LPG will  most  likely follow the same general pattern and be  pipelined
and trucked to northern industrial areas.  Likely pipelines are:

                                                             Size
Company            Point to Point                     (Diameter In Inches)

Texas Eastern      Cape Girardeau, Mo.  to Marcus          20 to 6
                   Hook, NJ

Phillips           St.  Louis, Mo. to Chicago, 111.            8


     Heavy products not suited to pipeline transportation will most  likely
take advantage of the extensive rail system that stretches through
Illinois, Indiana,  Ohio, and Pennsylvania.  Tank trucks will also move
large volumes.

     Indications  are that direct coal liquefaction products will  be
absorbed into the current distribution network and help satisfy local
demand or move to markets currently being served by product pipelines    the
Chicago area  and  industrial east.

     Indications  are that residual products of direct coal conversion will
be used primarily in the utility sector as boiler fuel.    Initially,  dis-
tillates may  be used for residential and commerical heating.  Naphtha may
be used as a  chemical  feedstock material.  LPG will find  application both
as a chemical  feedstock and as a heating fuel.  Attempts  will be  made
during 1993-2000  to use distillates from direct liquefaction as turbine
fuel.  Efforts to refine them for use in the transportation sector cannot
be ruled out.   If this  effort is successful, DOD could become a major
customer of direct  liquefaction products with coal plants built in
Appalachia supplying Andrews Air Force Base in Maryland (Reference 35).

3-3.4  Petrochemical Feedstocks and Other By-Products

     During 1980-1987,  the feedstocks for petrochemicals  and other
by-products will  have to come from medium-Btu gas production.   As shown  in
Table 21, naphtha or LPG production in this time period per Scenario II  is
negligible.  The  total  quantity of medium-Btu gas produced  is 0.09 MMBPD  in
Regions IV, VI, and VIII.  Considering the utilization patterns shown  in
Tables D-15 and D-16, about 50 to 75 percent of the medium-Btu  gas produced
in Region VI  will be consumed by the petrochemical industry as  feedstocks.
The medium-Btu gas  produced in Regions VIII and  IV will likely  be for
captive use by other industries, unless  some petrochemical  industries  are
built in these regions.  It is possible  that some of this medium-Btu gas
                                     73

-------
TABLE 21.  COMPARISON OF PETROCHEMICAL FEEDSTOCKS AND OTHER BY-PRODUCTS PRODUCED
           TO MEET THE GOALS OF SCENARIO II VS. SCENARIO I AND SCENARIO IIL
Sources
Product of Direct
Liquefaction
Naphtha
Total
Medium-Btu Gasification
Synthesis
Total
Product of Indirect/
Direct Liquefaction
LPG
Total
Region

III
IV
V
IV
V
VI
VII
III
IV
V
VIII
Scenario II
Feeds tocks(103BPD)
1980-87 1988-92

15.40
15.40

30.00 90.00
30.00 60.00
30.00 120.00
90.00 270.00

5.90
0.10
6.00
1993-2000

15.40
30.80
61.60
107.80

180.00
90.00
180.00
450.00

5.90
11.80
23.60
0.20
41.50
Scenario
Feedstocks (
1980-87 1988-92

6.60
33.70
40.30

30.00 90.00
150.00 210.00
180.00 300.00

9.90
12.40
0.40 0.90
0.40 23.20
103BPO)
1993-2000

6.60
33.70
40.30

90.00
210.00
300.00

9.90
12.40
0.90
23.20
Scenario I
Feedstocks (10-
1980-87 1988-92

6.60
33.70
40.30

30.00 90.00
150.00 210.00
180.00 300.00

9.90
12.40
0.40 0.90
0.40 23.20
'BPD)
1993-2000

13.20
67.40
80.60

210.00
120.00
210.00
540.00

19.80
24.80
0.90
45.50

-------
produced in Regions IV and VIII could be used to manufacture  ammonia  and
methanol,  which could eventually be used by the petrochemical  industry  to
manufacture other petrochemicals and  by-products.

     In comparing the product build-up rates of Scenario  II with  Scenarios
I and III, Table 21 shows that Scenarios I and III produce 0.09 MMBPD more
medium-Btu gas than Scenario II.   This increase in feedstock  production by
Scenarios  I and III would provide for additional feedstock utilization  in
Regions V  and VIII  for the manufacture of ammonia and methanol.   The
products could be eventually used to manufacture other petrochemicals and
by-products, to be used in those regions.

     During 1988-1992, all three primary sources of feedstocks will be
produced and will be more widely dispersed throughout the U.S.  The major
difference between  this time period and the earlier one is that naphtha and
LPG will be produced.   Naphtha is produced as a product of direct  lique-
faction in Region V.  LPG is produced in Regions V and VIII.   Medium-Btu
gas is still produced in Regions IV, VI, and VIII, the difference  being an
increase in quantities over the last time period.  The total  quantities of
feedstocks produced, as shown in Table 21, are:   naphtha-15,400 BPD;
medium-Btu gas   270,000 BPD; and LPG   6,000 BPD.  The utilization of
these feedstocks is expected to parallel  to some extent the current
regional consumption patterns shown in Tables D-15 and D-16.   However,
because only a small amount of naphtha is produced, it is expected that it
will  be used totally in Region V as a feedstock for other petrochemicals
and by-products or as feedstocks for  other industrial  use.  for example.
gasoline production.  The medium-Btu gas produced in Regions  IV,  VI,  and
VIII  is expected to be used for the same purposes discussed earlier in  the
1980-1987  period.  About 24 percent of the LPG produced in Regions V  and
VIII  can be used by petrochemical industries in Regions V and  VI  for
manufacturing petrochemicals and other by-products.  The  remaining 76
percent of LPG will likely be used  for other industrial applications  as
discussed  in Section 3.2.1.

     The 1993-2000  period will have the same types of feedstock production
as discussed for 1988-1992.  The difference is that the expected  quantities
of feedstocks increase significantly because of the increase  in the number
of plants  in operation by this time.  Table 21 shows that naphtha  produc-
tion  in Region V increases four times, and medium-Btu gas production  in
Region IV, doubles  while Regions VI and VIII increase by  one  and  one-half
times.  LPG production in Regions V and VIII increases by four and  by one
and one-half, respectively.  In addition, about 15,400 BPD and 30,800 BPD
of naptha  is produced in Regions III and IV.  Also, about 5,900 BPD and
11,800 BPD of LPG is produced in Regions III and IV.  The utilization
pattern of these feedstocks is expected to continue as discussed  earlier
for the 1988-1993 period.  The only exception may be that because  the
naphtha and LPG production are increased four times and they  are  also produced
in Regions III and  IV, some of these  feedstocks are likely to  be  trans-
ported to  Region VI.  If these feedstocks are transported, the likely mode
will  be by rail, and truck.
                                     75

-------
3.3.5   Summary of Synfuel  Product  Utilization  by Region

     For the three production  time  periods  identified  for Scenario II,  the
regional utilization  of  major  synfuel  products  (SNG,  LPG, gasoline,  middle
distillates, and  heavy distillates)  are  summarized in  Tables  22,  25, and
31.  In addition, detailed  tables  supporting each summary table show the
likely utilization by  region and by  consuming sector.   The quantities shown
by consuming sector,  using  quantities  utilized  by region, are allocated on
a percentage basis consistent  with  current  consumption patterns.   Figures
14 through  16  show the quantities  and  transport patterns  of synfuel
products within and outside of the  production regions.  In addition, the
tables present the current  regional  utilization patterns  as well  as  the
likely utilization patterns expected for synfuel  products.

     Table  22  and Figure 14 show that  during 1980-87  all  products produced
from shale  oil will be consumed in  Region VIII.   The  major consuming
sectors of  these  products are  shown  in Table 23.   During  the  same time
period, the SNG produced in Region  VIII  will be pipelined to  Region  V
industrial  centers for utilization.   Table  24 shows a  breakdown by
consuming sectors for  SNG.

     As shown  in  Table 23,  shale oil  products in  Region VIII  could displace
about 16 percent  of the  regional gasoline,  middle distillates,  and residual
demand, while  at  the  same time displacing about 9 percent of  the  region's
total energy needs.   Table  24  shows  that the SNG  (from Region VIII)  could
displace about 2  percent of Region  V's natural  gas demand and about  1
percent of  the region's  total  energy needs  during this time period.

     Table  25  and Figure 15 show a  shift in the utilization of shale oil
during 1988-1992.  About 50 percent  of these products  will be pipelined to
Region V, while about  5  percent of  the remaining  shale oil products
marketed in Region VIII  will be pipelined to Region X  for utilization at
Mountain Home  Air Force  Base in Idaho.  Another 5 percent of  the  remaining
quantity will  be  utilized at Hill  Air  Force Base  in Utah  (refer to Tables
26 through  28  for consumption  by major consuming  sectors).  Coal-derived
liquids and LPG will  be  consumed  in  the  respective production regions.   SNG
produced in Region VI  will  be  pipelined  to  Region IX  for  consumption (refer
to Table 29).  The SNG produced in  Region VIII  will be consumed in that
region (about  50  percent) and  the  remaining SNG will  be pipelined equally
to Regions  V and  VII  (refer to Tables  26, 27, and 30).  Of the expected
regional synfuel  products'  utilization patterns presented in  Table 25,  it
is shown that  about 97 percent of  Region VIII's middle distillate demand
will  be provided  by synfuel products,  the split being  2 percent from
indirect coal  liquids  and 95 percent from shale oil.

     The percentage of synfuel  market  penetration for  this time period
compared to the last  time period shows that SNG utilization in  Region V
will  be consistent.   However,  shale  oil  in  Region VIII will almost triple
in both cases  over the 1980-1987 time  period.   In addition, indirect coal
liquids and SNG will  supply about  0.068  MMBPD and 0.075 MMBPD (0.0326 MMBPD
from indirect  coal liquids) respectively of the demand for these  products
                                      76

-------
TABLE 22.  LIKELY UTILIZATION PATTERNS OF MAJOR SYNFUEL PRODUCTS BY REGIONS
           SCENARIO II, 1980-1987 TINE PERIOD  (IN NI1BPD)
PRODUCTS
NATURAL GAS
Current Consumption
Synfuels Contribu-
tion
LPG
Current Consumption
Synfuels Contribu-
tion
GASOLINE
Current Consumption
Synfuels Contribu-
tion
MIDDLE DISTILLATES
Current Consumption
Synfuels Contribu-
tion
RESIDUALS
Current Consumption
Synfuels Contribu-
tion
TOTAL
Current Consumption
Synfuels Contribu-
tion
EPA REGION
I

0.1266


0.0489
-


0.3592


0.3613


0.3628


1.2588

II

0.3834


0.0471
-


0.6190


0.6076


0.6016


2.2587

III

0.5507


0.0702
-


0.7957


0.4757


0.4130


2.3053

IV

0.7877


0.2505
-


1.3432


0.6659


0.5022


3.5495

V

1.9381
0.0420


0.3611
-


1.5265


0.8819


0.3005


5.0081
0.0420

VI

3.6962


0.2511
—


0.9523


0.5729


0.4032


5.8757

VII

0.6170


0.2070
-


0.4528


0.2193


0.0447


1 .5408

VIII

0.2995


0.0739
~


0.2708
0.0131


0.1516
O.OG70


0.0414
0.0069


0.8372
0.0770

IX

0.8697


0.0794
—


0.9698


0.4912


0.4590


2.8691

X

0.1939


0.0205
~


0.2726


0.2226


0.0636


0.7732

TOTAL
U.S.

9.463
0.042


1.410
~


7.562
0.013


4.650
0.057


3.192
0.007


26.277
0.119


-------
00
                      KEY
                      HBG — High Btu Gas
                      OS — Oil Shale
            Figure 14.   Synfuel  Production  and Utilization  Regions - Scenario  II  1930-1987

-------
 TABLE 23.   LIKELY UTILIZATION  PATTERNS OF MAJOR SYNFUEL PRODUCTS BY
             REGIONS AND BY SECTORS—SCENARIO II--1980-1987 TIME PERIOD
             REGION VIII (IN MI1BPD)
— — — 	
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasoline
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential
0.0984

0.0515



0.0185
0.0070



0.1684
0.0070
Commercial
0.0633

0.0057

0.0018
0.0001

0.0165
0.0062

0.0135
0.0023

0.1008
0.0086
Industrial
0.1121

0.0162

0.0145
0.0007

0.0238
0.0089

0.0222
0.0037

0.1888
0.0133
Transport-
ation
0.0071

0.0005

0.2545
0.0123

0.0907
0.0341

0.0043
0.0007

0.3571
0.0471
Electric
Utilities Total
i
i
0.0186 ' 0.2995
i
i
i
0.0739

! 0.2708
i _
0.0131
1
1
0.0021 0.1516
0.0008 0.0570
,
0.0014 0.0414
0.0002 0.0069
t
I
0.0221 0.8372
0.0010 0.077
Includes distillate fuel' oil, jet fuel, and kerosene
                                     79

-------
 TABLE 24.  LIKELY  UTILIZATION PATTERNS OF MAJOR SYNFUEL  PRODUCTS BY
            REGIONS AND BY SECTORS-SCENARIO II--1980-1987  TIME PERIOD
            REGION  V (IN I1MBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasol ine
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.8052
0.0174

0.1924



0.2685



1.2661
0.0174
Commercial

0.3841
0.0083

0.0214

0.0097

0.1122

0.0636

0.5910
0.0083
Industrial

0.6953
0.0151

0.1448

0.0306

0.0874

0.1229

1.0810
0.0151
Transport-
ation

0.0173
0.0004

0.0025

1.4862

0.3534

0.0236

1.8830
0.0004
Electric
Utilities

0.0362
0.0008





0.0604
Total

1.9381
0.0420

0.3611

1.5265

0.8819
:
0.0904

0.1870
0.0008
0.3005

5.0081
0.0420
'includes distillate  fuel  oil, jet fuel, and kerosene
                                       80

-------
TABLE 25.  LIKELY UTILIZATION PATTERNS OF MAJOR SYNFUEL PRODUCTS BY EPA REGIONS
           SCENARIO II — 1988-1992 TIME PERIOD (IN MMBPD)
PRODUCTS
NATURAL GAS
Current Consumption
Synfuels Contribu-
tion
LPG
Current Consumption
Synfuels Contribu-
tion
GASOLINE
Current Consumption
Synfuels Contribu-
tion
MIDDLE DISTILLATES
Current Consumption
Synfuels Contribu-
tion
RESIDUALS
Current Consumption
Synfuels Contribu-
tion
TOTAL
Current Consumption
Synfuels Contribu-
tion

EPA REGION
I

0.1266


0.0489


0.3592


0.3613


0.3628


1.2588


II

0.3834


0.0471


0.6190


0.6076


0.6016


2.2587


III

0.5507


0.0702


0.7957


0.4757


0.4130


2.3053


IV

0.7877


0.2505


1.3432


0.6659


0.5022


3.5495


V

1.9381
0.0420


0.3611
0.0059


1.5265
0.0349


0.8819
0.1704


0.3005
0.0285


5.0081
0.2817


VI

3.6962


0.2511


0.9523


0.5729


0.4032


5.8757


VII

0.6170
0.0420


0.2070


0.4528


0.2193


0.0447


1 . 5408
0.0420


VIII

0.2995
0.0746


0.0739
0.0001


0.2708
0.0977


0.1516
0.1466


0.0414
0.0183


0.8372
0.3373


IX

0.8697
0.0420


0.0794


0.9698


0.4912


0.4590


2.8691
0.0420


X

0.1939


0.0205


0.2726
0.0017


0.2226
0.0076


0.0636
0.0009


0.7732
0.0102


TOTAL
U.S.

9.463
0.201


1.410
0.006


7.562
0.134


4.650
0.325


3.192
0.048


26.277
0.714



-------
CO
           HAWAII
                  KEY
                  HBG — High Blu Gas
                  OS — Oil Shale
                  CL(D — Coal Liquid — Indirect Liquefaction
                  CL(0) —  Coal Liquid — Direct Liquefaction
             Figure 15.   Synfuel  Production  and Utilization  Regions  Scenario  II  -  7988-1992

-------
  TABLE  26.   LIKELY UTILIZATION  PATTERNS OF MAJOR SYNFUEL  PRODUCTS BY
             REGIONS AND BY SECTORS-SCENARIO 11-1983-1992 TIME PERIOD,
             REGION V (IN MMBPD)
Product
'.atural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
r. ,-
r o
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasoline
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale

Residuals
Current Consumption
Indirect Liquefaction
direct Liquefaction
Oil Shale
"otal
Current Consumption
High-Btu Gasification
Indirect Liquefaction
T'irect Liquefaction
Oil Shale
SECTOR
Residential

0.8052
0.0174


0.1924
-
0.0031





0.2685
-
0.0057
0.0461







1.2661
0.0174
-
0.0088
0.0461
Commercial

0.3841
0.0083


0.0214
-
0.0003

0.0097
-
0.0002

0.1122
-
0.0024
0.0193


0.0636
-
0.0021
0.0039

0.5910
0.0083
-
0.0048
0.0234
Industrial

0.6953
0.0151


0.1448

0.0024

0.0306
-
0.0007

0.0874
-
0.0018
0.0150


0.1229
-
0.0041
0.0076

1.0810
0.0151
-
0.0083
0.0233
Transport-
ation

0.0173
0.0004


0.0025
-
0.0001

1.4862
-
0.0340

0.3534
-
0.0075
0.0608


0.0236
-
0.0008
0.0015

1 . 8830
0.0004
-
0.0084
0.0963
Electric
Utilities

0.0362
0.0008










0.0604
-
0.0013
0.0105
Total

1.9381
0.0420


0.3611

0.0059

1.5265
-
0.0349

0.8819

0.0187
0.1517
\

0.0904

0.3005
~ 1 ~
0.0030 ! 0.0100
0.0055

0.0185

0.1870 5.0081
0.0008
-
0.0420
-
0.0043 ! 0.0346
0.0160
0.2051
'includes distillate fuel oil, jet fuel, and kerosene
                                       83

-------
   TABLE 27.   LIKELY UTILIZATION PATTERNS  OF  MAJOR SYNFUEL PRODUCTS
               BY  REGIONS AND BY SECTORS—SCENARIO 11 — 1988-1992
               TIME PERIOD REGION VIII  (IN  MMBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasoline
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates9
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.0984
0.0138
0.0107

0.0515
0.00007



0.0185
0.0003
0.0176


0.1684
0.0245
0.00037
0.0176
Commercial

0.0633
0.0089
0.0069

0.0057
0.00001

0.0018
0.0005
0.0002

0.0165
0.00027
0.0157
0.0135
0.0002
0.0058

0.1008
0.0158
0.00098
0.0217
Industrial

0.1121
0.0157
0.0122

0.0162
0.00002

0.0145
0.0035
0.0018

0.0238
0.0004
0.0226
0.0222
0.0004
0.0094

0.1888
0.0279
0.00432
0.0338
Transport-
ation

0.0071
0.0010
0.0008

0.0005
0.0000

0.2545
0.0605
0.0312

0.0907
0.0015
0.0862
0.0043
0.00008
0.0018

0.3571
c, 0.0018
0.06208
0.1192
Electric
Utilities

0.0186
0.0026
0.0020





0.0021
0.00003
0.0020
0.0014
0.00002
0.0006

0.0221
0.0046
0.00005
0.0026
Total

0.2995
0.0420
0.0326

0.0739
0.0001

0.2708
0.0645
0.0332

0.1516
0.0025
0.1441
0.0414
0.0007
0.0176

0.8372
0.0746
0.0678
0.1949
Includes distillate fuel oil, jet fuel, and kerosene
                                      84

-------
   TABLE  28.   LIKELY UTILIZATION  PATTERNS OF MAJOR SYNFUEL PRODUCTS
               BY REGIONS AND BY SECTORS—SCENARIO 11 — 1988-1992 TIME
               PERIOD REGION X  (IN MMBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasoline
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.0312

0.0094



0.0278
0.0010



0.0684
0.0010
Commercial

0.0279

0.0010

0.0029
0.00002

0.0269
0.0010

0.0096
0.0001

0.0683
0.00112
Industrial

0.1134

0.0098

0.0040
0.00002

0.0374
0.0012

0.0245
0.0003

0.1891
0.00152
Transport-
ation

0.0096

0.0003

0.2657
0.00166

0.1278
0.0043

0.0295
0.0005

0.4329
0.00646
Electric
Utilities

0.0118




Total

0.1939

0.0205

0.2726
0.0017

0.0027 ' 0.2226
0.0001 , 0.0760


! 0.0636
1
i
0.0009
i
!
0.0145
0.0001
j 0.7732
i
0.0102
Includes distillate  fuel  oil, jet fuel, and kerosene
                                     85

-------
  TABLE 29.  LIKELY  UTILIZATION PATTERNS OF  MAJOR SYNFUEL PRODUCTS BY
             REGIONS AND BY SECTORS—SCENARIO  11 — 1988-1992 TIME PERIOD
              REGION IX (IN MMBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasol ine
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.2795
0.0135

0.0283



0.0108


0.3186
0.0135
Commercial

0.1307
0.0063

0.0032

0.0097

0.0104
0.0076

0.1616
0.0063
Industrial

0.2625
0.0127

0.0469

0.0040

0.0599
0.0393

0.4126
0.0127
Transport-
ation

0.0145
0.0007

0.0010

0.9561

0.3983
0.1582

1.5281
0.0007
Electric
Utilities

0.1825
0.0088





0.0118
0.2539

0 . 4482
0.0088
Total

0.8697
0.0420

0.0794

0.9698

0.4912
0.4590

2.8691
0.0420
Includes distillate fuel oil, jet  fuel, and kerosene
                                      86

-------
 TABLE  30.   LIKELY UTILIZATION PATTERNS OF MAJOR SYNFUEL  PRODUCTS BY
            REGIONS AND BY SECTORS--SCENARIO 11—1988-1992  TIME PERIOD
            REGION VII (IN IIMBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasoline
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.1868
0.0127

0.1212



0.0315


0.3395
0.0127
Commercial

0.1222
0.0083

0.0135

0.0050

0.0203

0.0077
0.1687
0.0083
Industrial

0.1885
0.0129

0.0711

0.0202

0.0311

0.0150
0.3259
0.0129
Transport-
ation

0.0392
0.0026

0.0012

0.4276

0.1251

0.0072
0.6003
0.0026
Electric
Utilities

0.0803
0.0055




Total

0.6170
0.0420

0.2070

0.4528

0.0113
0.2193
t
I
0.0148
0.1064
0.0055
0.0447
\
1 . 5408
0.0420
Includes distillate fuel  oil, jet fuel, and kerosene
                                     87

-------
in Region  VIII  as  shown  in  Table  27.   In  Region  V,  direct  coal  liquids  and
shale oil  products  (50  percent  from Region  VIII)  will  add  about  0.035 MMBPD
and 0.2 MMBPD  (Table  26).   Region X will  receive  0.01  MMBPD  of  transpor-
tation and  heavy distillate products  from Region  VIII,  which in  turn will
satisfy about  2 percent  of  its  gasoline,  middle  distillate,  and  residual
demand.  About  1.3  percent  of  this region's total  energy demand  will be met
by synfuels  (Table  28).   Also  during  this period,  0.042 MMBPD of SNG will
be utilized  in  Regions  IX and  VII from production  Regions  VI and VIII,
respectively.   This quantity of SNG will  satisfy  about  5 and 7  percent  of
the regions' SNG demand  and about 1.5 and 3 percent of  their total  energy
demand, respectively  (Tables 29 and 30).

     During  1993-2000,  the  utilization patterns  are expected to  remain  the
same as in  the  last period.  The  differences will  be an increase in the
quantities  of  synfuel  products, along with  the addition of products
produced in  other  regions.   At  this time, coal-derived  liquids,  SNG, and
LPG (Table  31)  will be  produced and utilized in  Regions III  and  IV.  The
major consuming sectors  of  these  products are shown in  Tables 32 and 33.
It is expected  that about 24 percent  of the LPG  produced in  Regions III,
IV, and V  may  be transported to Region VI for use  by the petrochemical
industry (Tables 34 and  35).   The small  quantity  produced  in Region VIII  is
expected to  be  consumed  there,  as shown in  Table  36.

     Compared  to 1988-1992, synfuel  market  penetration  during this  time
period is  likely to be  identical  for  SNG  utilization in Regions  V,  VII, and
IX.  In addition,  SNG production  and  utilization  in Regions  III  and VIII
will add 0.084  MMBPD  and  an additional  0.0326 MMBPD more products to the
regions' SNG demand (Tables 32  and 36).   The additional  increase in SNG in
Region VIII  will result  from a  doubling of  indirect coal liquefaction
capacity.   Region  IV  will add  some 0.15 MMBPD of  gasoline  products  from
indirect coal  liquefaction  and  0.066  MMBPD  of products  to  displace  LPG,
middle distillates, and  residuals during  this time  (Table  33).   The other
major differences  in  synfuels  utilization by region and by sector for this
time period  will be an  increase in products produced;  LPG  consumption in
Region VI  (refer to Table 35);  and transportation  of about 0.005 MMBPD  of
coal-derived middle distillates to Region V for  consumption  because of  the
excess capacity produced  in Region VIII.

-------
00
              HAWAII
                          KEY
                          HBO - High Blu Gas
                          OS — Oil Shale
                          CL(I) — Coal Liquid — Indirect Liquefaction
                          CL(D) — Coal Liquid — Direct Liquefaction
         Figure 16.    Synfuel  Production and Utilization Regions  Scenario II  - 1993-2000

-------
      TABLE 31.   LIKELY UTILIZATION PATTERNS OF MAJOR SYNFUEL PROJECTS BY EPA REGIONS

                 SCENARIO II -- 1993-2000 TIME PERIOD (IN I1MBPD)
PRODUCTS
NATURAL GAS
Current Consumption
Synfuels Contribu-
tion
LPG
Current Consumption
Synfuels Contribu-
tion
GASOLINE
Current Consumption
Synfuels Contribu-
tion
MIDDLE DISTILLATES
Current Consumption
Synfuels Contribu-
tion
RESIDUALS
Current Consumption
Synfuels Contribu-
tion
TOTAL
Current Consumption
Synfuels Contribu-
tion
EPA REGION
I

0.1266

0.0489

0.3592

0.3613

0.3628

1.2588
II

0.3834

0.0471

0.6190

0.6076

0.6016

2.2587
' III

0.5507
0.0840

0.0702
0.0045

0.7957
0.3000

0.4757
0.0187

0.4130
0.0100

2.3053
0.4172
IV

0.7877

0.2505
0.0090

1.3432
0.1500

0.6659
0.0374

0.5022
0.0200

3.5495
0.2164
V

1.9381
0.0420

0.3611
0.0202

1.5265
0.0366

0.8819
0.2389

0.3005
0.0594

5.0081
0.3971
VI

3.6962

0.2511
0.0106

0.9523

0.5729

0.4032

5.8757
0.0106
VII

0.6170
0.0420

0.2070

0.4528

0.2193

0.0447

1.5408
0.0420
VIII

0.2995
0.1072

0.0739
0.0002

0.2708
0.1638

0.1516
0.1511

0.0414
0.0198

0.8372
0.4421
IX

0.8697
0.0420

0.0794

0.9698

0.4912

0.4590

2.2691
0.0420
X

0.1939

0.0205

0.2726
0.0018

0.2226
0.0080

0.0636
0.0010

0.7732
0.0108
TOTAL
U.S.

9.463
0.317

1.410
0.0445

7.562
0.652

4.650
0.454

3.192
0.110

26.277
1 .578
vo
O

-------
TABLE 32.  LIKELY  UTILIZATION PATTERNS  OF MAJOR SYNFUEL  PRODUCTS BY
           REGIONS AND BY SECTORS—SCENARIO II--1993-2000  TIME PERIOD,
           REGION  III  (flMBPD)
Product
'.atural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
IPG

Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasoline
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.2337
0.0356



0.0305
-
0.0020





0.1383
-
0.0054







0.4025
0.0356
-
0.0074

Commercial

0.1055
0.0161



0.0034
-
0.0002

0.0064
0.0024


0.0597
-
0.0024


0.0458
-
0.0011


0.2208
0.0161
0.0024
0.0037

Industrial

0.1885
0.0287



0.0356
-
0.00225

0.0033
0.0012


0.0586
-
0.0023


0.1049
-
0.0025


0.3909
0.0287
0.0012
0.00705

Transport-
ation

0.0214
0.0033



0.0007

0.00005

0.7860
0.2964


0.1839
-
0.0072


0.0490
-
0.0012


1.0410
0.0033
0.2964
0.00845

Electric
Utilities

0.0016
0.0003


Total

0.5507
0.0840


i
0.0702
;






0.0352
0.0045

0.7957
0.3000


0.4757
_ f _
0.0014


0.0187


0.2133 ; 0.4130
_ 1 _
0.0052 ; 0.0100



0.2501
0.0003

0.0066

2.3053
0.0840
0.3000
0.0332

Includes distillate fuel oil, jet  fuel,  and kerosene
                                      91

-------
TABLE 33.   LIKELY UTILIZATION PATTERNS OF MAJOR  SYNFUEL PRODUCTS BY
            REGIONS AND BY  SECTORS-SCENARIO  11—1993-2000 TIME PERIOD,
            REGION IV (III MMBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG

Current Consumption
Indirect Liquefaction
Direct Liquefaction

Gasoline
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total

Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.1893




0.1567
_
0.0056






0.0779

0.0044








0.4239

-
0.0100

Commercial

0.1299




0.0174
_
0.0006


0.0100
0.0010


0.0392
-
0.0022


0.0290
-
0.0012



0.2255
-
0.0010
0.0040

Industrial

0.3184




0.0739
-
0.0027


0.0035
0.0005


0.1033
-
0.0058


0.1392
-
0.0055



0.6383
-
0.0005
0.0140

Transport-
ation

0.0438




0.0025
_
0.0001


1.3297
0.1485


0.3996
-
0.0224


0.0566
-
0.0023



1.8322
-
0.1485
0.0248

Electric
Utilities

0.1063



Total

0.7877



l
0.2505
_
! 0.0090
l


i 1.3432
! 0.1500


0.0459

0.0026


0.6659
-
0.0374
i

0.2774 0.5022
-
0.0110 0.0200



0.4296

-



3.5495
-
0.1500
0.0136 i 0.0664


'includes distillate fuel oil, jet fuel, and kerosene
                                       92

-------
  TABLE 34.  LIKELY UTILIZATION PATTERNS OF MAJOR  SYNFUEL PRODUCTS  BY
             REGIONS AND  BY  SECTORS—SCENARIO  11—1993-2000 TIME PERIOD,
             REGION V  (IN MNBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasoline
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.8052
0.0174

0.1924
0.0108



0.2685
0.0015
0.0227
0.0484



1.2661
0.0174
0.0015
0.0335
0.0484
Commercial

0.3841
0.0083

0.0214
0.0012

0.0097
0.0002

0.1122
0.0006
0.0095
0.0202

0.0636
0.0084
0.0041

0.5910
0.0083
0.0006
0.0191
0.0245
Industrial

0.6953
0.0151

0.1448
0.0081

0.0306
0.0007

0.0874
0.0005
0.0074
0.0158

0.1229
0.0164
0.0079

1.0810
0.0151
0.0005
0.0319
0.0244
Transport-
ation

0.0173
0.0004

0.0025
0.0001

1.4862
0.0357

0.3534
0.0020
0.0300
0.0638

0.0236
0.0032
0.0015

1.8830
0.0004
0.0020
0.0333
0.1010
Electric
Utilities

0.0362
0.0008





0.0604
0.0004
0.0052
0.0109

0.0904
0.0120
0.0059

0.1870
0.0008
0.0004
0.0172
0.0168
Total

1.9381
0.0420

0.3611
0.0202

1.5265
0.0366

0.8819
0.0050
0.0748
0.1591

0.3005
0.0400
0.0194

5.0081
0.0420
0.0050
0.1350
0.2151
Includes distillate fuel  oil, jet fuel, and kerosene
                                    93

-------
  TABLE 35.   LIKELY UTILIZATION  PATTERNS OF MAJOR SYNFUEL  PRODUCTS BY
              REGIONS AND BY SECTORS—SCENARIO 11 — 1993-2000 TIME PERIOD,
              REGION VI (IN MMBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasol ine
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.2428

0.1329
0.0056



0.0217


0.4028
0.0056
Commercial

0.1641

0.0148
0.0006

0.0053

0.0574

0.0123
0.2539
0.0006
Industrial

2.0847

0.0935
0.0040

0.0033

0.1350

0.1057
2.4222
0.0040
Transport-
ation

0.1008

0.0099
0.0004

0.9437

0.3386

0.1801
1.5731
0.0004
Electric
Utilities

1.0984

='



0.0202

0.1051
1.2237
Total

3.6962

0.2511
0.0106

0.9523

0.5729

0.4032
5.8757
0.0106
alncludes distillate fuel oil, jet  fuel,  and kerosene
                                      94

-------
TABLE 36.   LIKELY UTILIZATION PATTERNS OF MAJOR SYNFUEL PRODUCTS BY
           REGIONS AND  BY  SECTORS—SCENARIO  11--1993-2000 TIME  PERIOD,
           REGION VIII  (IN MMBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasoline
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.0984
0.0138
0.0214
0.0515
0.00014



0.0185
0.0184


0.1684
0.0352
0.00014
0.0184
Commercial

0.0633
0.0089
0.0138
0.0057
0.00002

0.0018
0.0009
0.0002

0.0165
0.0165

0.0135
0.0004
0.0060
0.1008
0.0227
0.00132
0.0227
Industrial

0.1121
0.0157
0.0244
0.0162
0.00004

0.0145
0.0070
0.0019

0.0238
0.0237

0.0222
0.0008
0.0099
0.1888
0.0401
0.00784
0.0355
Transport-
ation

0.0071
0.0010
0.0016
0.0005
0.0000

0.2545
0.1211
0.0327

0.0907
0.0904

0.0043
0.00015
0.0019
0.3571
0.0026
0.12125
0.1250
Electric
Utilities

0.0186
0.0026
0.0040



Total

0.2995
0.0420
0.0652
0.0739
0.0002

0.2708
0.1290
0.0348
I
0.0021
0.0021
0.1516
0.1511
:
0.0014
0.00005
0.0006
0.0221
0.0066
0.00005
0.0027
0.0414
0.0014
0.0184
0.8372
0.1072
0.1306
0.2043
Includes distillate fuel  oil, jet fuel, and kerosene
                                      95

-------
  TABLE  37.   LIKELY UTILIZATION PATTERNS OF MAJOR SYNFUEL PRODUCTS BY
              REGIONS AND BY  SECTORS—SCENARIO 11 — 1993-2000 TIME PERIOD,
              REGION X  (III MMBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasol ine
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.0312

0 . 0094



0.0278
0.0010



0.0684
0.0010
Commercial

0.0279

0.0010

0.0029
0.00002

0.0269
0.0010

0.0096
0.0001

0.0683
0.00112
Industrial

0.1134

0.0098

0.0040
0.00003

0.0374
0.0013

0.0245
0.0004

0.1891
0.00173
Transport-
ation

0.0096

0.0003

0.2657
0.00175

0.1278
0.0046

0.0295
0.0005

0.4329
0.00685
Electric
Utilities

0.0118





0.0027
0.0001



0.0145
0.0001
Total

0.1939

0.0205

0.2726
0.0018

0.2226
0.0080

0.0636
0.0010

0.7732
0.0108
'includes distillate fuel  oil, jet fuel, and  kerosene
                                        96

-------
TABLE  38.   LIKELY UTILIZATION  PATTERNS OF MAJOR  SYNFUEL PRODUCTS BY
            REGIONS AND BY SECTORS—SCENARIO 11 —1993-2000 TIME PERIOD,
            REGION IV (IN MMBPD)
Product
Natural Gas
Current Consumption
High-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Gasoline
Current Consumption
Indirect Liquefaction
Oil Shale
Middle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
High-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
btCTUR
Residential

0.2795
0.0135

0.0283



0.0108



0.3186
0.0135
Commercial

0.1307
0.0063

0.0032

0.0097

0.0104

0.0076

0.1616
0.0063
Industrial

0.2625
0.0127

0.0469

0.0040

0.0599

0.0393

0.4126
0.0127
Transport-
ation

0.0145
0.0007

0.0010

0.9561

0.3983

0.1582

1.5281
0.0007
Electric
Utilities

0.1825
0.0088





0.0118

0.2539

0.4482
0.0088
Total

0.8697
0.0420

0.0794

0.9698

0.4912

0.4590

2.8691
0.0420
Includes distillate  fuel  oil, jet fuel, and kerosene
                                  97

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 TABLE  39.   LIKELY UTILIZATION PATTERNS OF  MAJOR SYNFUEL PRODUCTS  BY
             REGIONS AND BY SECTORS—SCENARIO 11 —1993-2000 TIME  PERIOD,
             REGION VII  (IN Mi IBRD)
Product
Natural Gas
Current Consumption
^igh-Btu Gasification
Indirect Liquefaction
LPG
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Sascl ine
Current Consumption
Indirect Liquefaction
Oil Shale
Viddle Distillates3
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Residuals
Current Consumption
Indirect Liquefaction
Direct Liquefaction
Oil Shale
Total
Current Consumption
rign-Btu Gasification
Indirect Liquefaction
Direct Liquefaction
Oil Shale
SECTOR
Residential

0.1868
0.0127

0.1212



0.0315



0.3395
0.0127
Commercial

0.1222
0.0083

0.0135

0.0050

0.0203

0.0077

0.1687
0.0083
Industrial

0.1885
0.0129

0.0711

0.0202

0.0311

0.0150

0.3259
0.0129
Transport-
ation

0.0392
0.0026

0.0012

0.4276

0.1251

0.0072

0.6003
0.0026
Electric
Utilities

0.0803
0.0055





0.0113

0.0148

0.1064
0.0055
Tote1.

0.617C
0.042:

0.207C

0.452;

0.2192

0.0447

1 . 540fc
0.0423
a.
 Includes  distillate fuel oil, jet fuel, and kerosene
                                    98

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                                 SECTION 4

                    CHARACTERISTICS OF SYNFUEL PRODUCTS

     This  section  reviews  the limited data available on the characteristics
of synfuel  products  and  by-products and on synfuel combustion products and
use properties.   Where  data  are available on the corresponding
petroleum-based  products,  the synfuel products and their petroleum analogs
are compared.   Relevant  comments on the characteristics of synfuel products
as compared  to  petroleum products and the environmental significance of
their differences  obtained through interviews with potential  industrial
suppliers  and  users  of  synfuels are also summarized in this section.

     Only  limited  characterization data on synfuel products are available;
however, there  is  also  a lack of comparable data on petroleum products.
Surprisingly,  in some cases  there appears to be more data available on the
synfuel  properties  than  on the  characteristics of their petroleum analogs.
The limitations  of  the  available data, and a review of some of the relevant
on-going and planned programs that are expected to generate additional
data, are  presented  in  Section  7.  Detailed data supporting the discussion
in this  section  are  presented in Appendices A, E, F. and G.

4.1  PHYSICAL/CHEMICAL  CHARACTERISTICS

4.1.1 Shale Oil Products

     Most  available  data on  the properties of shale oil products  from
larger scale production  operations have been collected on the DOD's
synthetic  fuel  development program, which included producing first 10,000
barrels, then  100,000 barrels,  of crude shale oil at the Anvil Points,
Colorado,  pilot  plant (see Section E.I, Appendix E).   The subsequent
refining,  which  was  carried  out at two different refineries, involved
producing  gasoline,  JP-4,  JP-5, diesel fuel marine (DFM), and heavy fuel
oil  to military  specifications.  The data collected on these products  and
the data from other  studies  are presented in Appendix  E.  Based on analysis
of the data  and  the  detailed information in Appendix E, the following
statements can  be  made  about the characteristics of crude shale oil and
shale oil-derived  gasoline,  JP-4, JP-5, DFM, and residual fuels in
comparison with  their petroleum-based analogs.

     •    As with  crude petroleum oils, the characteristics of  raw shale
          oils vary depending on the source and  the retorting method  used,
          and  except for somewhat higher concentrations of certain elements
          (for example, nitrogen and arsenic), which can be reduced by
          appropriate refining techniques  (for example, by
                                     99

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     hydretreating), shale oil composition  falls within the
     composition range  for petroleum crudes.

•    Based on the data  collected  during  the  refining of two  shale oils
     into products meeting military specifications, there appear to be
     certain differences  between  the characteristics of shale oil
     refined products and their petroleum-based analogs.  However,
     experience with refining  petroleum  crudes  indicates that by
     proper selection of  the  refining  steps  and conditions,  crude
     shale oils can be  processed  to obtain  products with gross
     characteristics similar  to their  petroleum-based analogs.

•    Crude shale oil has  a higher nitrogen  and  arsenic content than
     petroleum crudes (1.8 to  2.17 weight percent versus 0.1 weight
     percent, and 5 to  65 ppm  versus 0.17 ppm,  respectively).  Unless
     it is reduced by processing  (for  example,  by hydrotreating), the
     high nitrogen content can lead to problems in downstream refining
     such as cracking,  reforming  and hydro-  cracking.  High
     concentrations of  organically bound nitrogen can also cause odor
     and instability problems  in  the products and can increase NO
     emissions during combustion.  Removing  of  organic nitrogen  by
     hydrotreating and  acid treating,  however,  improves the  storage
     stability characteristics of the  product fuels, as determined by
     gum and JFTOT measurements (see Section E.I.3 and Table E-7,
     Appendix E).

•    Mild hydrotreatment  reduces  nitrogen levels to below 100 ppm.
     Hydrotreatment also  significantly reduces  arsenic content.

0    Crude shale oil contains  significantly  less vanadium than
     petroleum crudes (0.1 to  0.55 ppm versus 4.4 ppm) (see  Table E-2,
     Appendix E).  Because vanadium content  directly influences  the
     conversion of sulfur to  SO.,  during  combustion, it can be
     concluded that sulfate emissions  from  shale oil should  be less
     than conventional  petroleum  crudes.

t    Most crude shale oils have consistently higher pour points  than
     most petroleum crudes (+50°F to +85°F  versus -30°F to +57°F   see
     Table E-l, Appendix  E).   Distillation  data also shows a lower
     portion of the 650 F boiling fraction  with shale oils (roughly 60
     percent or more of the crude shale  oil  boils above 650  F compared
     to 40 to 50 percent  for  three petroleum crudes tested   see Table
     E-l, Appendix E).

t    Gasoline refined from crude  shale oil  will require reforming to
     raise its octane number.  However,  as  indicated by the  data in
     Table E-6 (Appendix  E),  refining  causes a  dramatic increase in
     the aromatic content of  shale oil gasoline (from 10.4 volume
     percent to 50.1 volume percent).  The  presence of large amounts
     of aromatics in gasoline  can increase  PNA  formation during
     combustion.
                                 100

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     •    Nitrogen  compounds  in  JP-5  refined from shale oil  were implicated
         in  fuel stability problems.   Removal  by hydrotreatment and acid
         clay treatment  reduced nitrogen  compounds to 0.5 ppmw and
         produced  fuels  that  met  or  exceeded  the standards  for storage
         stability characteristics  as  measured by RD gum and JFTOT tests
         (see Table  E-7,  Appendix E).

     •    The aromatic  content of  shale-derived JP-5 fuels is somewhat
         higher  than  for  typical  petroleum derived JP-5, (21.5 to 25.8
         volume  percent  versus  16 volume  percent), but is within military
         specification  (25 volume percent maximum) (see Table E-7,
         Appendix  E).

     •    Diesel  fuel  marine  (DFM) produced from refining of a shale oil
         had high  octane  numbers  (50.1)  and hydrogen content (13 weight
         percent), which  indicate good combustion properties.

     •    Residual  fuel  oil from refining  of a  crude shale oil met all
         military  specifications  (except  pour point) for a low-sulfur,
         high-power No.  6 fuel  oil.   The  sulfur concentration was well
         below  specification  for  a  typical No. 6 fuel oil (0.02 weight
         percent versus  0.24  weight  percent for No. 6 fuel  oil  and 3.5
         weight  percent  maximum for military specification).  The nitrogen
         content was  0.44 weight  percent  (versus 0.23 weight percent  for
         No. 6  fuel  oil), which is  significantly less than that for the
         crude  shale  oil  (1.8 to  2.17  weight  percent).


4.1.2  Direct Coal  Liquefaction Products

     As  noted previously,  of  the three  direct  coal liquefaction processes
considered,  only  SRC II  has been tested in a pilot plant; H-Coal and EDS
have  not yet  reached the  pilot plant stage of development.  Thus, the
characteristics  of  products and process streams from bench-scale and
pilot-scale  units may not  be  representative of those from large-scale
plants,  a major  limitation that should  be  clearly understood  in
interpreting  the  characterization  data.  It should also be noted that  all
three liquefaction  processes  can be  run in different modes to produce
different process oils.   For  example, H-Coal can be run in a  boiler-fuel
mode  to  maximize  residuum production or in a syncrude mode to produce  a
wide  range  boiling  fractions  product.  This section presents  data for
H-Coal  syncrude  oil, EDS  "raw" process  liquid, and SRC  II whole process
oil.   Because coal  type can  affect product characteristics, where available
the type of  coal  used is  also identified.

     Detailed physical  and chemical  characterization data for the direct
liquefaction  products are presented   in Appendix E.  The  following  is  a
summary  of  the  data and an interpretation  of their  significance.

     •   Syncrudes from the  direct   liquefaction  processes have  lower
         viscosities and pour points  than  petroleum  crudes.  Kinematic
                                     101

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viscosity measurements at  100  F  have  indicated  values of 2.2 and
1.1 to 1.6 cst for SRC II  whole  process oil and H-Coal  syncrude,
respectively  (versus 6.14  and  18.9  cst  for  an Arabian light and
an Arabian heavy crude,  respectively).  A pour  point value of
-80 F is reported for SRC  II whole  process  oil  (versus  -30 F  for
the two Arabian crudes).   The  lower viscosities and pour points
indicate better handling and transfer characteristics.

As with shale oil, direct  liquefaction  syncrudes  have a high
nitrogen content (0.17 weight  percent for H-Coal  using  low sulfur
coal to 0.85 weight percent for  SRC II  whole process oil versus
0.1 weight percent for crude oil).  The nitrogen,  however, can be
reduced to about 50 ppm  by moderate hydrotreating  and to less
than 1 ppm by severe hydrotreating.

The sulfur content of raw  syncrudes (0.04 to 0.49  weight
percent)would classify them as  low  sulfur feed.   The sulfur
content is reduced to about 20  ppm  or less  by hydrotreating.

SRC II whole  process oil has an  aromatic content  of 55  volume
percent.  Included in that value  is almost  9 percent phenols.
The aromatic  content is  reduced  to  49 percent by  intermediate
severity hydrotreating and to  4  percent by  severity
hydrotreating.

Naphtha from  SRC II, H-Coal, and  EDS  contain 16.2, 18.6 and 25.3
volume percent aromatics and 3.2, 3.1 and 7.4 volume percent
phenols, respectively.   Hydrotreatment  appears  to  result in an
increase in total aromatic content  and  elimination of phenols.
The hydrotreated naphtha from  the three processes  contain 19 to
21 volume percent aromatics.

Naphtha from  direct liquefaction  processes  has  a  low octane
number (40 to 70) and hence is  not  suitable for direct  use as
gasoline.  Hydrotreating/platforming  or hydrocracking/platforming
produces gasoline stocks with  octane  numbers ranging from 91.5 to
99.8.

Gasoline or naphtha from direct  liquefaction processes  are
substantially less volatile than  petroleum-derived leaded or
unleaded gasoline.  The  distillation  end point  for          Q
petroleum-derived gasoline is  340 to  345 F  versus  382 to 411 F
and 365 to 459 F for liquefaction naphtha and gasoline,
respectively.
Coal liquefaction naphtha  can  be  processed  to  gasoline,  having
gross compositions  (percent  aromatics,  olefins,  saturates,  etc.)
similar to petroleum-derived  gasoline.

The oil distillates  from the  EDS  process  are very  low  in  nitrogen
and sulfur (0 ? *n  n fi nnm *nrl  ?  tn  13Q nnm. resnpr.t.i vel vl.
Except for a
     ar to petroleum-derived  gasoline.

     >il distillates from the  EDS  process  are  very  low  in  nit
and sulfur (0.2 to 0,6 ppm  and 2  to  139 ppm,  respectively).
     >t for a lower gravity  (2.5 to 27.9 versus  30  API) and
                            102

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         higher  flash  point  (136  versus  100°F),  the distillates meet the
         specifications  for  No. 2  fuel  oil.

     •    SRC  II  fuel oil  (5.75:1  middle-to-heavy distillate ratio) is very
         similar to  No.  6  fuel  oil  in  characteristics,  except for lower
         gravity (11 versus  25  API),  heating  value (17,081 versus 19,200
         Btu/lb),  pour point  (-30  F versus  95 F), flash point (150 versus
         200  F), and higher  nitrogen  content  (1.02 versus 0.23 weight
         percent).

     •    Jet  and diesel  fuels obtained from  H-coal and  SRC II syncrudes
         meet the  specifications  for  these  products.


4.1.3    Indirect  Coal  Liquefaction Products


     The  indirect coal  liquids addressed  here  include  Fischer-Tropsch

gasoline, Mobil-M gasoline, and  methanol.   Most of the physical and

chemical  properties  reported  for the two  synthetic gasolines are estimates

made  by Mobil  Research  and  Development  for commercial  products.  Despite

the fact  that  Fischer-Tropsch  gasoline  is  produced commercially in South
Africa, detailed  chemical  analysis  data are  not available for this product,
as well as  for Mobil-M  gasoline  and  coal-derived  methanol, which are not
produced  on  a  commercial  scale.  The most  environmentally significant
properties  are reported below, but  it  should  be kept in  mind that these
products  could actually be  blended  with petroleum gasolines.  A more

detailed  description  of the indirect liquids  is provided in Appendix E.


     •    Fischer-Tropsch gasoline  is  reported to be free of nitrogen and
         sulfur, but no data  are  available  on the extent to which oxygen
         compounds are present.

     •    Estimates based on  material  balance  calculations for a
         commercial-scale  Fischer-Tropsch production unit indicate that
         the  aromatics content  of  Fischer-Tropsch gasolines would be lower
         than that of  typical  petroleum gasoline  (17 versus 24 to 36
         volume  percent).  The  estimated  saturate content  (60 percent) is
         similar to  that of  petroleum gasolines  (56 to 59 percent), but
         Fischer-Tropsch gasoline  is estimated to contain signicantly more
         olefins (20 percent)  than typical  petroleum gasoline (5 to 8
         percent)  (see Tables  E-17 and E-21,  Appendix E).

     •    The  estimated Reid  Vapor Pressure for Fischer-Tropsch gasoline
          (10  psi)  is within  the range determined  for petroleum gasolines


                                     103

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          marketed  in the U.S.  (7  to  15  psi)  (see  Section  E.3.1,  Appendix  E),

          The Fischer-Tropsch  synthesis  unit  also  generate a  small  stream
          of oxygenates  including  alcohols,  aldehdyes,  and ketones.   These
          chemicals may  be distributed commercially.   (At  the SASOL  plant
          in South  Africa, the  aldehydes  are  hydrogentated and nethanol  is
          used on site as make-up  in  the  Rectisol  gas  cleaning unit;
          ethanol ,  propanol,  butanol,  pentanol,  acetone, MEK, and a  higher
          alcohol fraction are  products  distributed  commercially  (see
          Section E.3.1.1, Appendix  E).
          Mobil-M gasoline  is  reported  to  be
          of  nitrogen,  sulfur,  and  oxygen.
                                    free of detectable quantities
          The estimates  of  the  amounts  of  saturates,  olefins,  and  aromatics
          in commercial  Mobil-M gasoline  (61,  7,  and  33  weight  percent)  are
          very  similar to the amounts typical  of  petroleum gasolines  in  the
          U.S.  (56  to 59, 5 to  8,  and 24  to  36 weight  percent)  (see  Table
          E-17  and  E-27, Appendix  E).

          The estimated  Reid Vapor Pressure  for Mobil-M  gasoline  (9.0 psi)
          is within  the  range determined  for petroleum gasolines marketed
          in the U.S. (7 to 15  psi)  (see  Table E-27  and  Section E.3.1).

          The concentration of  benzene, a  very volatile,  hazardous
          substance,  in  petroleum  gasoline is  approximately 0.3 volume
          percent to  3.0 volume percent  (Reference 36);  no data are
          available  on the  concentration  of  benzene  in Fischer  Tropsch
          gasoline  or Mobil-M gasoline.
           In terms  of  gross  characteristics,  fuel-grade methanol  from coal
           conversion is  not  expected  to  be  significantly different  from
           fuel-grade methanol  derived from  other sources
           possible  that  certain  hazardous substances  may
           coal-derived methanol.   No  analytical  data  are
           support this assertion  (Reference 36).   Higher
           and non-methane  hydrocarbons will comprise  less
                                               ,  although  it  is
                                               be  present  in
                                               available  to
                                               alcohols,  ethers
                                                 than  one  percent
of the crude methanol  (see Table E-28, Appendix  E).   Water will
comprise about five  percent  (see Table E-28, Appendix E), but
this may vary if the distribution  system  introduces additional
water, because the very hygroscopic  nature  of methanol.
4.1.4  Coal Gasification  Products

     Most of the  available  data  on
for products from Lurgi gasifiers.
discussion presented  in Appendix E,
about the chemical characteristics
                         the  chemical  characteristics  of  SNG  are
                          Based  on  analysis  of  the  data and the
                          the  following  statements  can  be  made
                         of SNG:
                                      104

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         As  with  natural  gas,  the  principal  component of high-Btu coal gas
         is  methane,  typically about  98.4 percent by volume (dry).   The
         methane  in  natural  gas ranges  from  64.1 to 97.6 percent by
         volume,  depending  on  the  source  (see Appendix E,  Section E.4.1,
         and Table  E-29).

         Minor  components  of high-Btu coal  gas and natural  gas are
         hydrogen,  nitrogen,  argon,  carbon  dioxide, and carbon monoxide.
         Trace  quantities  of helium  may also be present in  both gases.
         Specifications  for natural  gas currently require  a CO level of
         less than  1000  ppm.   Concentrations of CO in high-Btu coal gas
         are typically 60  ppm.

         Sulfur-containing  compounds, such  as hydrogen sulfide, may be
         present  in  both  high-Btu  coal  gas  and natural gas.  Trace amounts
         of  carbonyl  sulfide have  been  observed in high-Btu coal gas (see
         Section  E.4.1 and  Table E-29,  Appendix E).  Gas purification and
         upgrading  processes remove  nitrogen in SNG (References 37 and
         38).   Propyl mercaptan is often  added to natural  gas to provide
         for odor detection in leaks.

         Recent data  from  a pilot  unit  suggest that trace  quantities of
         metal  carbonyls  may be produced  during SNG production in
         methanation, in  gasification,  or by reaction of CO with metals in
         system piping and  other components  (see Section E.4.1, Appendix
         E).  Metal  carbonyls  have not  been  detected in natural gas, and
         would  not  be expected to  be  formed  or remain in detectable
         quantities  in natural  gas under  natural geological conditions.

         The concentration  of metal  carbonyls in SNG can be controlled by
         selecting  proper  operating  conditions.  The rate  of metal
         carbonyl formation in SNG production is proportional to the total
         gas pressure and  CO partial  pressure, and is inversely
         proportional to  temperature  (References 38 and 39).  Formation of
         nickel carbonyl,  Ni(CO)  the  one  most readily formed, is favored
         at  temperatures  below 275 C  (Reference 40).

         The recommended  NIOSH permissible  exposure limit  for Ni(COK is
         0.001  ppm  (0.007  mg/cu m)  (Reference 40).  There  are currently no
         SNG product  specifications  for metal carbonyls.

         Although quantitative data  are currently unavailable,  some trace
         and minor  elements* may be  present  in SNG and few volatile
 ine definitions  of the terms "trace" element and "minor" element are not
universal  and  are subject to interpretation.   However, as applied to coal
and synfuel  products it is generally held that trace elements are those
that occur in  concentrations of less than 0.1 percent, and minor elements
are those  that occur in concentrations of 0.1 percent to 1 percent by
weight  (Reference 42).
                                     105

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4
          elements  (such  as  As,  Se,  Te,  Hg  and  F)  are  likely  to  be  found  in
          natural gas.  Some  of  these  volatile  elements  are likely  to  be
          present in  higher  levels  in  SNG than  in  natural  gas, because of
          their  relative  scarcity  in natural  environments  and the
          geological  constraints associated with  natural  gas  generation.

     Detailed chemical  characterization  data  for  low-/medium-Btu coal  gas
are provided  in  Section E.4.2, Appendix  E,  including Tables E-30, E-31 and
E-32.  The  following  is a  summary  and  analysis  of  the  data.

     •    In  general,  the  chemical  composition  of  low-/medium-Btu gas  is
          highly variable, depending on  such  factors as  coal  type,  gasifier
          type,  gasifier  operating  conditions,  and extent  of  gas cleaning
          performed.

     •    The major chemical  components  of  low-Btu gas are: N,,  CCL, CH
          and 02 + Ar  (46.8  percent, 26.3 percent, 15.4  perceht, 9.5
          percent,  1.3 percent and  0.7 percent, respectively).

     •    Other  constituents  of  low-Btu  gas present at ppm levels or
          greater are  sulfur  species  (H?S,  COS, S0?);  C,  to Cfi
          hydrocarbons (CH    C?Hfi,  C?H., and  variobs C^  to Cfi
          isomers); nitrogen  compounds (NH3 and HCN);  and  metal
          carbonyls.

     •    A large number  of  trace  and  minor elements may also be present  in
          the low-/medium-Btu product  gas,  associated  with particulate
          matter and  vapor phases  (Al, Sb,  As,  Ba, Ce, Ga, etc.)

     0    In  addition  to C-.  to C/r  hydrocarbons, a  number of high molecular
          weight complex  organic compounds, such  as dinitrotoluene  and its
          derivatives,  PCB's, benzo(a)pyrene, and  biphenyl, may  be  present
          in  low-Btu  product  gas.   Many  of  these  compounds are known or
          suspected carcinogens.

     •    Product gas  from a  low-Btu gasification  facility was shown to
          contain 0.01  ppmv  Ni(CO).  and  0.004 ppmv Fe(CO)5 (Reference  41).

4.1.5  Summary of the  Data Currently Available  and Data  Gaps  from an
       Environmental Assessment  Standpoint

     While more  physical and  chemical  characterization data are  available
for some synfuel products, for example,  crude shale and  gasoline derived
from shale oil,  than  for others,  for example, coal-derived methanol, in
general  the available  data are very  limited and cover  only the gross
characteristics, for  example, ultimate analysis or composition by classes
of compounds.   Also,  little characterization  data  are  available  for many  of
the petroleum-based products  that  are  currently in widespread use.   In
general, the  limited available data  indicate  that,  in  comparison with  the
petroleum products, environmentally  significant characteristics  of  synfuel
products relate to higher fuel-bound nitrogen and  aromatic contents of


                                     106

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liquid  shale  oil  and  coal  liquefaction products.  As will be discussed  in
Section  4.2,  higher  levels  of aromatics and fuel-bound nitrogen result  in
an
increase  in  emissions of PNA's and NOV during combustion.
                                        x
Although  detailed  characterization data are not available, synfuel  products
would  be  expected  to  contain  trace concentrations or minor amounts  of
coal-derived  or  shale oil-derived hazardous substances.

4.2  COMBUSTION CHARACTERISTICS

4.2.1   Shale  Oil Products

    The  DOD's synthetic  fuel  development program included a relatively
extensive  evaluation  of the  combustion characteristics of the shale oil
products.   Most  of the work  reported to date is based on the 10,000-barrel
sample (see Section E.I,  Appendix E).   In addition to the DOD efforts,
Southern  California Edison Company (SCE) has studied the handling and
combustion  (in a 45-MW utility boiler) of a separate lot of whole shale  oil
for  the Electric Power Research Institute (EPRI).  Subscale and full-scale
tests  have  also  been  reported  on the combustion of de-ashed and
de-sulfurized Paraho  shale oil  in gas  turbine combustors.  The combustion
test results  for shale oil  products are presented in Section F.I, Appendix
F,  and are  summarized below.

    In the SCE  evaluation tests, the  crude shale oil was compared  with  the
low  sulfur  oil.*   Because of  California air quality control regulations,
only up to  50 percent of  the  burners were fueled with shale oil.  The crude
shale  oil  had a  somewhat  higher nitrogen content (1.98 weight percent
versus 0.22 weight percent),  sulfur (0.68 weight percent versus 0.27 weight
percent),  and ash  (0.22 weight percent versus 0.009 weight percent) and  was
lower  in  heating values (HHV  18,195 versus 19,235 Btu/lb and LHV  17,145
versus 18,100 Btu/lb) than the low sulfur oil (see Table F-l, Appendix F).
The  SCE study indicated:

    •    No  significant  fuel  handling, fuel mixing, combustion
          instability, smoke  formation, or boiler operational problems
          during burning  of  shale oil.
*Direct  utilization of "unprocessed" crude shale oil as boiler  feed  would
have  some  economic  merits and the SCE tests were aimed at evaluating such
use  potential.   The study, however, was not a comparison between  crude
shale oil  and  petroleum crude.
                                     107

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     •    High N0x emissions with  the  crude  shale  oil*  (on  the  average  90
          to 500 ppm higher during normal  firing and  70 to  225  ppm higher
          during off-stoichiometric burning)  (see  Table F-2,  Appendix F).

     •    Increase in  emission  of  particulates  with the rise  in the
          percentage of  crude shale oil  in the  feed (with 50  percent shale
          oil, the mass  emissions  ranged from 0.15 to 0.12  Ib/M Btu
          compared to  0.02 Ib/M Btu with low sulfur fuel alone  (see Figure
          F-l, Appendix  F).

     t    With shale oil, emission of  a  higher  fraction of  larger particles
          that should  be more easily removable  by  the particulate control
          devices  (90  percent of the particles  were larger  than 20
           micrometers  (ym);  estimates for oil-fired boilers range from 58 weight
          percent  below  3ym to 90 weight  percent  below 7 urn  (see Section
          F-l and  Figure F-2, Appendix F).

     •    Lower  emission of  polynuclear  aromatics  (PNA) with  the crude
          shale  oil  (at  50 percent shale oil  in the feed, the total  PNA
          emitted  was  0.92 yg/m ,  which  is within  the range of  PNA       3
          emissions  from petroleum oil burning  plants — 0.1  to 9.24 yg/m -
          see Table  F-3, Appendix  F).


     The  results of  SCE  studies are, in  general,  consistent with the
results of  other studies in which  the  combustion  characteristics of whole,
deashed,  and desulfurized shale oils were  compared with those of No. 2
petroleum distillates  in a turbine combustor.  These  studies  indicated  only
10 to 20  ppm higher  NO  levels  with the  shale oil  containing  0.33 weight
percent nitrogen.  (The  lowest  NO   emissions were  observed  at highest
exhaust temperature  of about  2000 F).  The  smoke  values were only slightly
above those of the No. 2 distillates over  most  of  the range of  exhaust
temperatures tested.

     Only a limited  number of combustion-related tests  have been run with
gasoline, jet fuels, and DFM from  shale  oil  (see Sections F.I.2, F.I.3, and
F.I.4, Appendix  F).  Except  for slightly higher smoke and N0x emissions,
the shale-oil products have  been found to  exhibit  combustion  characteris-
tics very similar  to those of their petroleum analogs.   A flight test using
oil shale JP-4 in  a  T-39 was rated "normal"  and no in-flight  problems were
encountered.  Corrosivity measurements have  indicated no compatability
*It should be noted  that  lower  NO  emissions would have probably been
obtained if  residual  fuel  oil from shale oil refining had been used instead
of crude shale oil for  comparison with  the  low sulfur oil.   As noted in
Section 4.1, residual shale  fuel  oil  has a  lower nitrogen content than the
crude shale  oil  (0.44 to  1.4 weight percent versus 1.8 to 2.17 weight
percent) (see Tables  E-9  and E-2  in Appendix E).
                                      108

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problem  with  the  use  of DFM in  ship fuel  systems.  Tests with typical
diesel engines  showed  that  combustion efficiency, CO, and THC were the  same
as for petroleum  DFM.

     Although the combustion studies reported to date have not included
measurements  of trace  elements  and sulfate emissions, chemical
characteristics of the shale oil  fuels indicate that, except for certain
specific  elements such as  arsenic, mercury, and manganese, these emissions
should be  comparable  to, or lower than, those for petroleum based analogs.
Vanadium  concentration in  crude shale oil  is significantly less than in
petroleum  crudes; because  SOo formation is directly related to vanadium
concentration,  it can  be concluded that SCL emissions under equivalent
conditions (excess (L  and  S) should be less for crude shale oil.

4.2.2 Direct Coal Liquefaction Products

     The  bulk of  the  combustion testing of direct liquefaction products has
been  with  SRC II-fuel-oil-type  liquids.  Various blends of SRC II liquids
(2:1  to  5.7:1 mixtures of  middle-to-heavy distillates) have been combusted
in commercial  boilers  under a range of firing rate, flame configuration,
and excess air  conditions.   Fuel  handling and corrosion characteristics and
emissions  of  NO , carbon monoxide, particulates, and PNA have been
monitored.  The conditions  used and the results obtained in some of the
more  complete combustion tests  are discussed in Section F.2, Appendix F,
and are  summarized in  Table 40.

     Based on the results  summarized in Table 40, except for a higher NO
emission,  there appears to  be no  significant difference between the     x
handling   and combustion characteristics of SRC II fuel oil blends and
No. 6 fuel  oil.   The  investigators have concluded that the excess NOX
emissions  can be  eliminated and the NO  emissions reduced to less than  the
0.5 Ib/M  Btu  EPA  standard  by proper burner design and combustion
modification.  Although no  data have been collected, based on the
composition data  for  the fuels  trace element emissions for the SRC II fuels
should be  comparable  to those for petroleum fuels.

     The  handling and  combustion  characteristics of H-Coal liquids have
been  evaluated  only to a very limited extent.  These evaluations have
primarily  emphasized  engineering  aspects (atomization, coke formation,
combustion parameters); the environmental data collected in these tests
have  been  limited to  emissions  of NO  and smoke.  These studies, the
results  of which  are  summarized in Tables 41, indicate that:

     •     H-Coal  distillates, both raw and hydrotreated, appear to be
          compatible  with  No. 2 fuel oil.

     t     The coke formation in a turbine combustor would  be a problem  for
          raw H-Coal  distillates, but is reduced dramatically by
          hydrotreatment.
                                     109

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                    TABLE  40.   COMBUSTION TEST  RESULTS  FOR  SRC  II FUEL OILS
Investigator
SRC-11 Fuels Tested
Singh et al
(Reference 5;
Appendix F)
MD, HD. MD/HD blend,
3:1 N0.2/SRC-II  blend,
1:1 No.Z/SRC-II  blend
Bauserman
(Reference 8;
Appendix F)
Babcock and Mil cox
(Reference 13;
Appendix F)
5:1 MD/HD
5.75:1 MD/HD
KVB
(Reference 14;
Appendix F)
2:1 MD/HD
Equipment/test
Sub-scale
gas-turbine like
combustor
Full-scale combustor
used in Westlnghouse
30 to 90 MW engines;
187-h  corrosion test
using various alloys
and SRC-11 solvent
wash

Package boiler
Ambient monitoring
44 MW field boiler
        Results
•  All fuels burned well
•  no significant handling problem
•  max excess NOX levels  (with HD) 20  to
   130 ppm above baseline
•  Increase 1n smoke levels with decreasing  hydro-
   gen content & increasing aromaticitv of fuels
•  decrease in % emissions of fuel-bound
   nitrogen (FBN) with increase in fuel
   FBN and outlet temperature.

t  NOX emission for blend containing
   9.83% FBN 30 to 120 ppm higher than  No.2
   distillates
•  decrease in smoke value with increase
   in exhaust temperature
t  corrosion/deposition problems  similar
   to petroleum-derived products

•  easy pumping/handling  during test program
   (replaced hydrocarbon  seals  with
   teflon/viton seals as  precausion)
•  no benzene/phenol emitted,  based on
   ambient monitoring data
•  NOX emissions for blend higher than  for
   No.2 and No.5
•  no tendency to smoke despite higher
   aromaticity
•  lower particulate emission  in  comparision
   with No.5 oil
•  ash composition for blend similar to that
   for No.5 oil except for Fe,  Ca,  Mg,
   Cr, Mn and Sn which were higher.

•  no major operation (burner optimization,
   boiler deposits,etc.)  problems in com-
   parision with No.6 fuel  oil
•  NOX emissions about 70% higher than  for
   No.6 fuel oil
•  lower particulate  emissions  compared to
   No.6 fuel oil; emissions less  than
   proposed NSS of 0.03 Ib/M Btu

•  PNA emissions for both,blend and No.6
   less than 6 p/M3 (6x10-  Ib/M Btu)
•  tendency for Incomplete conbustion
   comparable to No.6 fuel  oil  (CO levels
   below 50 ppm)
 *Sce Section F.2.T, Appendix F
 * -SRC  II  Tu»T«.:  MO - m^ddlo 
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                                     TABLE 41.    COMBUSTION TEST RESULTS FOR  H-COAL  FUELS
Investigator
               Fuel s
Equipment/test
        Results
Mobil  Research
(Reference 9,
Appendix F)
Singh, et.  al.
(Reference  5,
Appendix F)

 Sinqh, et. al.
 (Reference 5,
 Appendix  F)
Raw and hydrotreated H-Coal distillate
No.2 fuel  oil  (reference)
Small  combustion  turbine
H-Coal  distillates  (210-480°F; 300-500°F;
and H-Coal  atmospheric 450-650°F)
No.2 fuel  oil  (reference)

H-Coal  distillate (210-480°F)
No.2 fuel  oil  (reference)
Sub-scale  gas  turbine
1 ike combustor
Full  scale  combustor
•  Excellent atomization characteristics;
   no deposit formation in fuel lines
•  coke formation  dependent on degree of
   hydrotreating;  negligible coke for-
   mation with adequate hydrotreating
•  severly hydrotreated H-Coal liquid
   (10.5 and 11.7  wt.% H; FNB
     0.2 wt.%) had lower NOx emissions
   than NO.2 fuel  oil (134 vs. 148 pptn)
•  low CO emissions  (31-41 ppm)

•  30 to 60  ppm more NOX emitted with
   H-Coal fuels
•  smoke level similar to No.2 fuel

•  20 ppm excess NOX emission with
   H-Coal fuel (0.17 wt.% N) than
   with No.2 fuel  (0 wt.% N)
•  lower smoke values except at exhaust
   temperature above 1750°F
*See Section  F.22, Appendix F.

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     •    N0x  levels  for  severely hydretreated  H-Coal  distillates  are
          expected  to  be  below NO  levels  for  No.  2  fuel  oil.
                                  ^

     EDS  fuels vary significantly in  their handling  and  combustion
characteristics.  Because of  immiscibility with  petroleum fuels  and
differences  in viscosity, they will  require separate storage  and transfer
lineSy    Because  of degradation upon  exposure  to air at  higher temperatures
(100 F  and  above),  nitrogen  blanketing in  storage tanks  may be necessary
for at  least  some EDS  fuels.   Table  42 summarizes  the  combustion test
results  for  some  EDS  fuels.   As noted  in the table,  the  results  indicate no
special  problems  (flame out,  nozzle  fouling, shutdown).  These fuels  burn
very cleanly  and, except  for  higher  NO  emissions  (which  can  be  reduced by
hydrotreating), appear to have combustion  characteristics similar  to No. 2
petroleum fuel.

4.2.3   Indirect Liquefaction  Products

     No  data  on the emissions from combustion  of Fischer-Tropsch or  Mobil-M
gasoline  are  currently available.   Sampling of  uncontrolled emissions  from
methanol-fueled automobiles  and comparing  the  results  with emissions from
gasoline-fueled engines  (see  Section  F.3 and Reference 16 in  Appendix  F),
however,  indicate that:   (1)  CO emissions  are  about  the  same  but NO
emissions are  lower;  (2)  hydrocarbon  emissions  are about  the  same  and  are
dominated by  unburned  methanol; (3)  polynuclear  aromatic  emissions are
reduced  to  as  little  as one-tenth;  (4) aldehydes,  particularly
formaldehyde,  are increased  three to  five  fold;  and  (5)  no lead  or sulfur
are emitted.

4.2.4   Coal Gasification  Products

     Data on  the  combustion  characteristics of  low-Btu gas have  been
obtained  as part  of an EPA-sponsored  comprehensive assessment of low-Btu
gasification  technology involving Source Test  and  Evaluation  (STE) programs
at operating  low-Btu  gasification  facilities.   Analytical  results  of
testing  at  a  facility  using  lignite  coal are presented in Section  F.4,
Appendix  F.   The  data  indicate that a  wide variety of  gaseous species  can
be emitted  as  low-Btu  gas combustion  products  (see Table  F-9, Appendix F),
with the major components including N£ (77.8 +  5.2 percent),  Oo/Ar (16.0 +
4.8 percent)  and  COo  (5.4 ± 2.2 percent).   S02,  CSo,  HCN  and  NR3 were
measured  at 103 + 122, 2.8 +  5.8,  1.0  +  1.0 and  0.005  ppmv, respectively.
The chemical  analyses  also indicated  that  a wide variety  of trace  and  minor
elements  are  emitted,  both as particulate  matter and as  vapor (see Table
F-10, Appendix F).   The elements  detected  at the highest  concentrations,
that is, more  than  120 pg/SCM,  were barium,  calcium,  iron, magnesium,
potassium,  silicon, sodium, and sulfur.

     Aromatic  compounds were  also  detected as constituents of the  combusted
low-Btu  gas.   However, these  compounds were generally  simple  ring  systems
and included  fewer  nitrogenous  compounds than the  uncombusted product  gas.
Benzo(a)anthracene  v/as found  to be  present in  the combusted gas  at a
                                      112

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                                       TABLE  42.   COMBUSTION TEST RESULTS FOR  EDS COAL LIQUIDS
      Investigator
Fuels
                                              Equipment/test
                                                                                           Results
      Quinlan
      (Reference 18,
      Appendix F)
     Quinlan and
     Segmond
      (Reference 18,
     Appendix  F)
co
      Singh ,  et  al.
      (Reference 5,
      Appendix F)
400"I"°F (Illinois Coal)
FLEXICOKING liquid
                       blend  containing
                                   50-Hp package boiler
400-1000°F blend  (containing No
FLEXICOKING liquid)
Reference petroleum  fuels:
  regular sulfur  (2.2 wt.%S)
  low sulfur     (0.5 wt.  S)
Raw and hydrotreated middle-distillate
coal liquid
No.2 fuel  oil  (reference)
                                              1-gal/hr domestic  oil
                                              burner
EOS whole process  liquid
EDS process without  650  F  fraction
No.2 fuel oil  (reference)
                                              Sub-scale turbine-like
                                              combustor
• No problems such  as  flame light-off,
  nozzle fouling  or shutdown encountered
0 coal  liquids burned  cleanly with
  smoke levels equal to or less than
  reference fuels at all  levels of excess
  air
• particulate emission levels were very
  low for coal fuels (27  and 33 vs.
  50 and 131  mg/SCM for reference fuels)
• NOX emissions from coal liquids higher
  than for reference fuels (490 and 580
  vs. 300 and 440 ppm  for reference fuels)

• coal  liquids burned  cleanly
  (same smoke number as reference
  fuel  at a given level of excess air)
• hydrotreated coal  liquid interchangeable
  with No.2 fuel
• NOX emissions from raw  distillate higher
  than with hydrotreated  or reference
  fuel

• smoke levels slightly higher than for
  No.2 fuel
• NOX 60 to 75 ppm  higher for the whole
  process liquid  (0.08 wt.%N) compared to
  emissions for No.2 fuel.
      *See  Section  F.2.3, Appendix F.

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concentration of 450  yg/SCM.   Not  present  in  the  product  gas were
benzo(a)pyrene, dibenzo(a,h)anthracene,  and 7,12-dimethyl-
benzo(a)anthacene.

     Although no actual  data  are currently available, the combustion
products of medium-Btu gas  are  expected  to be  similar to  those  for low-Btu
gas.

4.2.5  Summary Of The Data  Currently  Available And  The Data Gaps From An
       Environmental Assessment Standpoint

     Based on the synfuel utilization scenarios developed in Sections 2 and
3, using synfuel products as  fuel  in  combustion systems provides the
greatest potential  for exposure.   Thus,  combustion  emissions and their
potential impacts on  air  quality are  of  highest priority  in any
comprehensive environmental  assessment of  synfuel products utilization.

     Uhile more data  are  available on combustion  characteristics of some
synfuel  products, for example,  shale  oil and  SRC  II  fuel  oils,  little or  no
data are available  on other synfuel  products,  for example, Mobil-M and
Fischer-Tropsch gasolines.   In  general,  the limited  combustion  tests and
evaluations, that have been conducted have used batches of products
produced in pilot-plant  units  and  have focused primarily  on engineering
aspects  of combustion  (fuel  handling, atomization,  and corrosion
characteristics) with comparatively little emphasis  on a  comprehensive
environmental assessment  of combustion emissions.   For products for which
some environmental  data  have been  reported, such  data primarily relate to
emissions of conventional pollutants  such  as  particulates and N0x.  Except
for some recently generated data on the  concentrations of trace and minor
elenents in flue gas  from low-Btu  gas combustion, environmental  data, as
well as  "information  on various  environmentally significant organic
constituents (for example,  specific PNA's), are generally unavailable for
synfuel  products.   Also,  the reported test results  are largely  for use as
fuels  in boilers; other  fuel  uses, such  as for use  as gasoline  in
automobiles, nave not been  evaluated, or if evaluated, the results have not
yet Deen published.

     Based on the limited combustion  test  data available  for crude shale
oil and  shale oil-derived gasoline, jet  fuels, and  DFM, these products
generally produce higher  smoke  and NO emissions  than their petroleum
analogs.  Higher NO   emissions  have also been observed in the combustion  of
SRC II,  EDS and H-c6al fuel  oils.   It has  been asserted that the excess N0x
emissions from boilers can  be  reduced via  combustion modifications.

4.3  BIOLOGICAL AND  HEALTH  EFFECTS CHARACTERISTICS

4.3.1   Shale Oi1 Products

     Biological and  health  effects characteristics  of shale oil and  shale
oil  products have been examined only  to  a  very limited extent,  using
samples  from various  experimental  and pilot plant production and  refining


                                      114

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operations.  Test  results  obtained  to  date  indicate that,  with the
exception of the crude  shale  oil  from  surface  retorting, which has been
found to be more toxic  than crude  petroleum, there  appear  to be no
significant differences  between  petroleum and  shale-derived products.   The
following are  the  highlights  of  the reported data  (see Section G-l,
Appendix G for details).

    •    Ames Salmonella  tests  conducted on crude  surface retort shale
         oil,  crude  in  situ  shale  oil,  and  crude  petroleum oils indicate
         that shale  oil is slightly more mutagenic than crude petroleum
         oil.   One  set of tests with Salmonella  typhimurium TA 98
         indicated values of 0.59  to  0.65  revertants/yg  for shale oil
         versus 0.01  revertants/yg for  two  petroleum crudes and 114 ± 5
         and  5430 ±  394 revertants/yg for  benzo(a)pyrene  and
         2-aminoanthracene (two known carcinogens),  respectively (see
         Table G-2,  Appendix G).

    •    Skin-painting  studies  with mice indicated that crude shale oil is
         more potent  than crude petroleum  in  inducing tumors, both in
         terms of higher  observed  incidences  and  shorter  latency periods
         (see Table  G-7,  Appendix  G).

    •    Mammalian cell culture studies (see  Table G-5, Appendix G)
         indicated higher cytotoxicity  for  shale  oil  than for petroleum
         crudes (dose  required  to  reduce number of colony producing cells
         to 50 percent  of control  values was  40 to 200 yg/ml for shale oil
         fractions versus 190 to  350  yg/ml  for three petroleum crudes; the
         corresponding  values for  three reference  substances, cadmium
         chloride, zinc chloride,  and lead  chloride were  0.3, 6.8 and 37
         yg/ml, respectively).   Shale oil  also produced a higher
         percentage  (3  percent) of transformed cell  colonies than crude
         petroleum (0.2 to 0.4%)  (See Table G-6,  Appendix G).

    •    Acute toxicity of shale  oil  appears  comparable  to that of
         petroleum crude  (oral  rat LD5Q of 9.22 g/kg versus  >12 g/kg for
         petroleum crudes.

    •    Eye  irritation tests with rabbits  and skin sensitization and
         dermal irritation tests  with guinea  pigs indicated no significant
         differences  between petroleum   and  shale-derived JP-5 and DFM
         fuels.   Based  on test  results, all  four fuels would be considered
         non-irritants.

    t    Data similar  to  the above data for crude shale oil and shale oil
         JP-5 and DFM are not currently available for other shale derived
         products  (e.g.,  residual  fuel  oil).   Studies to  generate some of
         the  needed  data  are currently  underway.
                                     115

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4.3.2   Direct Liquefaction Products

     Although a considerable effort is currently underway to generate the
data needed  to assess biological  and health characteristics of direct coal
liquefaction products, at the present time very little health and
ecological  effects data are available.  The limited available data largely
relate  to  primary products (e.g., fuel oils) and do not cover all secondary
products  (e.g., gasoline) or emissions associated with product end uses
(e.g.,  combustion).   No health effects data have been reported for any of
the EDS products.   The bulk of the available data discussed in this section
pertain to  the SRC II products.

     Table  43 summarizes the available health effects data for SRC II
products  (available  data cover only naphtha, light fuel oil, and heavy
distillates).  These data indicate that based on Ames test and skin
painting  studies naphthas from petroleum and SRC II are not significantly
different  in their mutagenic or tumorigenic activity; SRC II appears to be
more acutely toxic via skin absorption.  No health or ecological effects
tests  have  been conducted on gasolines produced from SRC II naphtha.

     Neither SRC II  middle distillate nor petroleum-derived No.2 fuel oil
appears to  be mutagenic.  SRC II  middle distillate and petroleum middle
distillate  (No.2 diesel oil) exhibit similar cytotoxicity, although the SRC
II product  may be slightly more toxic.  SRC II middle distillate is
somewhat more toxic  than No. 2 diesel  oil when orally administered to rats
and is  reported to cause burns when it comes in contact with human skin, a
problem not  associated with petroleum middle distillates.

     Skin-painting tests indicate that both petroleum-derived industrial
fuel oils and SRC  II-derived heavy distillates pose considerable skin
carcinogenicity hazards.  The results of tests of mutagenicity,
cytotoxicity, and  cell transformation indicate that the SRC II heavy
distillate  is a very toxic substance.

     The very limited health effects studies that have been conducted with
H-Coal  products have been primarily with naphtha (from the syncrude mode of
operation)  and middle distillate  (from the fuel oil mode of operation).  As
with petroleum-derived naphtha,  H-Coal naphtha has been found to be non-
mutagenic (Ames Test).  No other  health effects data are available for
H-Coal  naphtha.  The relatively high phenols content of naphtha (3.1 volume
percent), however, indicate a higher degree of toxicity for H-Coal naphtha
as compared  to petroleum products, which generally contain less than 1
volume  percent phenols.  Health  effect data for H-Coal middle distillates
(fuel  oil mode) are  presented in  Table 44.  Comparable test results for
petroleum middle distillates are  not available.  As noted in Table 44, the
untreated middle distillate show  moderate to high activity for
mutagenicity,  tumor  production,  and cytoxicity.  The potency is eliminated
or reduced by hydrotreating.
                                      116

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                             TABLE  43.    SUMMARY  OF  HEALTH  EFFECTS  DATA  FOR  SRC  II  PRODUCTS  AND
                                              (WHERE AVAILABLE)  FOR  PETROLEUM ANALOGS*
       Test
                              Naphtha
                                           Light Fuel  Oil
                                                                                                                      Heavy Distillates
Ames Mutagenicity
Cytotoxicity (on cultured
 mammalian cells)
Skin-painting
Acute and
toxicity
subchronic
Maternal  and fetal
toxicity  (rats)
Toxicity via  skin
absorption
                     No mutagenic activity for
                     SRC-II  (revertants/yg<0.01)
                     or petroleum naphtha
                     180 Vg/ml dose required to
                     produce a 50% reduction in
                     relative plating efficiency
                     (RPE); no comparative data
                     for petroleum analog
                     (RPEcn for crude petroleum
                     190-350 wg/ml)

                     As  with petroleum naphtha
                     extreme low tumorogenic activity;
                     tumor incidence: 1/46 at 20 mg/
                     application after 456 days
                     (vs. 44/46 at 0.005 mg/applica-
                     tion for benzo(a)pyrene,
                     a known carcinogen)
Moderately toxic.  Acute gavage
rat  LDcQ:  2.3 g/K   '   '
(5 days)  gavage rat
0.96 g/Kg
                     rat   LD<;/: 2.3 g/Kg; Subchronic
                                         LD50:
                     No  significant enhanced
                     toxicity to embryo or the
                     fetus  (risk only slightly
                     higher than for the mother)

                     Unlike petroleum naphtha,  shows
                     some acute effect at a high
                     dose levels (1.6
                                      No measurable mutagenic  activity
                                      (revertants/ug <0.01);mutagenic
                                      activity demonstrated for certain
                                      petroleum distillates
RPE50:  200  yg/ml (vs. 250
Diesel  oil  No. 2 and 0.3 yg/m
cadmium chloride)
                                                                  l for
                                                                  for
More toxic  than diesel oil  (acute
rat  LD50=3.75 g/Kg vs. 11.8 g/KrV,
sub acute gavage rat  1050=1.48 g/Kg
                                     Same as for naphtha
                                     Unlike the petroleum  products,
                                     can cause skin burns
                                              Most mutagenic of the three SRC-II
                                              products  (a 40 ± 23 revertants/yg)
with an RPE50 of 30
most cytoxic of all synfuel pro-
ducts tested; very active in
effecting  cell transformation
                                                                                    highly potent1';  12S  and 100S
                                                                                    tumor incidents  after  456 days
                                                                                    at 0.23 and 2.3  mg/application,
                                                                                    respectively; 85% of tumors
                                                                                    malignant
LDjQ about the  same as for
naphtha and light fuel oil
                                              Same as  for naphtha
*See Section G.2.1,  Appendix G for details
tNo comparable data  available for petroleum analog,
                                        but industrial  fuels oils have been  shown to present  considerable skin carcinogenic!ty hazard.

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       TABLE 44.   HEALTH EFFECTS TEST RESULTS FOR H-COAL FUEL OILS *
     Test
      Hydrotreatment
Raw   Low   Medium High
Mutagenicity (Ames)
Tumor Production
Cytotoxicity
Ht
M
M
H
N
M
H
N
M
N
N
L

     *From Reference 15  in Appendix G

     tH=high;   L=low;   M=medium;   N=no  response
4.3.3  Indirect Liquefaction Products

     Carcinogenicity testing has  been
(boiling point up to 204 C) from  a  Fi
a considerable amount  of research on
performed.  However, no other  health
carried out on Fischer-Tropsch  gasoli
Mobil-M gasoline.   In  the  absence of
chemical composition of synthetic and
basis for judging their relative  toxi
conclusions reached based  on the  cons
follows (see Section G.3,  Appendix  G)
  conducted on a raw gasoline fraction
 scher-Tropsch demonstration plant and
 the toxic effects of methanol has been
 or ecological effects tests have been
 ne and no tests have been conducted on
 actual test data, comparison of the
  petroleum gasolines can provide a
 cities.  The test results and
 ideration of compositions are as
          Application  of  Fischer-Tropsch  gasoline  to  the  skin  did  not
          induce  skin  cancer  in mice  or  rabbits.   Injection  into the thigh
          of  rats  did,  however, caused  carcinomas  attributable to  the
          treatment  in  2  of the 15  rats  tested.  Comparable  tests  have
          apparently not  been  conducted  for  petroleum gasolines.

          Examination  of  the  data available  on  the gross  characteristics  of
          Fischer-Tropsch and  Mobil-M gasolines  provides  no  reason to
          believe  that  the two products  will  produce  significantly
          different  health effects  than  petroleum  gasoline.

          Based on the  gross  characteristics  data, the health  effects
          caused  by  exposure  to coal-derived  methanol  are not  expected to
          be  different  from those of  the  methanol  currently  being  used.
          Widespread distribution of  methanol  as a motor  fuel  would,
          however, result in  increased  exposure  to the chemical.   The
          effects  of chronic  exposures  to methanol are not  known.
                                      118

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4.3.4   Coal Gasification  Products

    Little data  are  currently available on the biological and health
effects  of high-Btu coal  gas.   Although a number of high-Btu gasification
pilot  plants  have been  in operation in the United States, the focus has
been on  improving the gasification  process, with little emphasis on health
and  biological  effects  of product gases and waste streams.

    Carbon monoxide, hydrogen sulfide and metal carbonyls, which are
present  in high-Btu gas  in trace amounts, are the principal toxic
constituents  of  SNG.   Although the  remaining constituents, methane, carbon
dioxide, nitrogen, argon, and  hydrogen, are non-toxic, they can result  in
asphyxia if their combined concentration exceeds 20 to 30 percent (volume)
in air.   As  indicated in  Section 4.1.4, CO and HLS are also present in
natural  gas,  but  metal  carbonyls are not.   The principal toxic effect  of
carbon monoxide  is also  asphyxia by combining with hemoglobin and rendering
it incapable  of  carrying  oxygen to  the tissues.  Because exposure to 1000
ppm  or more  is  considered dangerous, current standards for pipeline quality
gas  require the  CO concentration to be below 1000 ppmv.  High-Btu coal  gas
would  be upgraded to  meet this criteria.

    Hydrogen sulfide is  an irritant at 20 ppm and an asphyxiant at higher
concentrations.   Because  a typical  H^S concentration in high-Btu coal  gas
is 0.2 ppmv,  hydrogen sulfide  does  not pose a significant health hazard.

    Toxic metal  carbonyls, which are present in high-Btu coal gas  in  trace
amounts, are  Ni(CO).  and  Fe(CO),-.  Nickel carbonyl is extremely toxic,  with
a lethal exposure in  man  of 30 ppm for 30 minutes.  Chronic exposure is
associated with  a high  incidence of cancer of the respiratory tract and
nasal  sinuses.   Iron  carbonyl  is less toxic than nickel carbonyl.

    Limited  data are available on  the biological and health effects
characteristics  of low-/medium-Btu  coal gas (see Section G.4.2, Appendix
G).  The Department of  Energy  is currently sponsoring investigations of the
toxicological characteristics  of product gas and effluents from low-Btu
gasifiers.  Toxicological studies have also been conducted by EPA on
products of  low-Btu combustion.  EPA studies have involved testing  of
particulates  and  resin  extracts from combustion products  from a
Wellman-Gal usha  gasification plant  in Fort Snelling, North Dakota
(Reference 26,  Appendix  G).  The particulates and extracts were obtained
using  a Source  Assessment Sampling System  (SASS), which consists of a
series of impingers,  filters,  and resins for the collection of particulates
and  gaseous  impurities.    Cytotoxicity, acute toxicity, and Ames
mutagenicity  tests on the extracts  indicated no mutagenic  activity  at
concentrations  below  10  Pi/test plate.   (The extract was  found to  be
extremely toxic  to the  tester  strains at concentrations  greater than  10
i'1/test plate,  which  precluded carrying out the mutagenicity  testing).  The
extract was moderately cytotoxic to human  lung  fibroblast  cells tested in
vitro  and had an LDrn of  greater than  10 g/kg,  indicating  low oral
toxicity.
                                      119

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4.3.5  Summary of the Data Currently Aval 1 able and Data Gaps from an
       Environmental Assessment Standpoint

     While a considerable effort  is underway to develop health effects data
on synfuel products, at the present time  the limited available health
effects data generally address only a  few of the  primary synfuel products.
The data also do not cover many of the secondary  synfuel products or
emissions associated with the use of the  products as fuels.  As with the
chemical characteristics, surprisingly little health effects data are
available for many  of the petroleum products (which are currently in
widespread use) to  provide a baseline  for comparison of the  relative safety
of the synfuel products.  Samples that have been  tested are  from batches of
products  from pilot-plant operations.  Health effects characteristics of
the following products appear to  be similar to those of their petroleum
analogs, and should not present special  health effects concerns:  shale
oil-derived jet fuels and DFM; SRC  II  middle distillate and  naphtha;
severely hydrotreated H-Coal fuel oil  and H-Coal  naphtha; F-T gasoline; and
low-/medium-Btu gas.  Crude shale oil, however, has been shown to be more
mutagenic, tumorigenic, and cytotoxic  than petroleum crudes.  Also, heavy
distillate from SRC  II has been shown  to  present  considerable skin
carcinogenicity, cytotoxicity, mutagenicity, and  cell transformation
hazard.

4.4  RELEVANT COMMENTS FROM POTENTIAL  MAJOR SYNFUEL SUPPLIERS AND USERS

     Concurrent with their process  development and optimization activities,
the developers of the synfuels are  currently involved  in a  number of
programs  aimed at characterizing  synfuel  products and at identifying and
developing refining  procedures necessary to produce products comparable or
superior  to currently used petroleum-based products.  Anticipating  a switch
to synfuel products, the  designers  and manufacturers of engines, boilers,
and other user's equipment, and other  synfuel  users  (for example, the
petrochemical industry) have  also  been engaged  in programs  involving
assessment of combustion  and  use  characteristics  of synfuel  products in
order  to  identify necessary modifications to equipment  and  handling
systems.  Many of these programs  are  on-going  and because  they  are
generally considered company  proprietary, the  results  are  not  publicly
available.  To obtain  insights  into  the  thinking  of  potential  synfuel
suppliers and users, interviews were  conducted  in this  study with three
major  potential suppliers  (Exxon,  Tosco  and  Shell), a  petroleum  industry
trade  organization  (American  Petroleum Institute),  three potential  major
users  (General Motors, a  major chemical  company  and Department  of the
Navy)  and Electric  Power  Research Institute  (representing  the  utility
industry's interests).    Details  of  the  interviews  are  presented  in
Appendix A.  Those  portions of the  acquired  information  that relate to  the
characteristics of  synfuels in comparison to petroleum  products  and the
environmental significance of  such  differences  are  summarized  in Tables 45
and 46.   It should  be emphasized  that  the data  presented here  and  in
Appendix A represent the  views expressed by  the  interviewees.   Some of  the
assertions and statements made, which  are reproduced  here  without
                                      120

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    TABLE  45.  SUMMARY OF COMMENTS FROM SYNFUELS  SUPPLIERS  ON THE
                RELATIVE CHARACTERISTICS OF SYNFUELS  AND PETROLEUM
                PRODUCTS
Company/Organization
                    Comments
EXXON
TOSCO
Shale oil
•  Raw shale oil is equivalent to low-grade petroleum
   crude and can be processed to a premium feed for
   refineries
•  Refinery processes are continueously modified to
   handle different crudes and can readily handle shale
   oil which is equivalent to a heavy crude
•  Shale oil will  produce essentially the same  products
   as currently produced from petroleum (in terms of
   ASTM fuel specs).

Coal  liquids
•  Direct liquefaction products are highly aromatic:
   upgrading via severe hydrotreating/hydrocracking
   necessary to produce petroleum-like products
•  Naphtha from direct liquefaction processes  is easily
   converted to prime mogas base stock; EDS is  being
   refined to yield all naphtha and distillates
•  Products from indirect coal  liquefaction are very
   similar to petroleum based products
•  Heavy oils will  contain polynuclear aromatic
   substances (PNA's).  Handling and burning of heavy
   oils may be an  issue and long term health effects
   of combustion products not known.   Some testing
   would be necessary
•  Except for some effect on the optic nerve, methanol
   is more benign  than gasoline.  Methanol spilled in
   water is less of a problem than gasoline.
   There are no composition unique to oil  shale
   compared to petroleum;  crude petroleum  has a range
   of composition that brackets crude shale oil
   The higher nitrogen and arsenic contents of shale
   oil can be removed by hydrotreating and use of
   catalyst guard beds, respectively
   Products (e.g., gasoline) from shale oil will  be
   produced to specifications as are petroleum based
   products
   Toxicity testing indicates the same or  a lesser
   carcinogenicity potential for shale oil than for
   conventional crude or industrial  fuel
   As far as polycyclic aromatic hydrocarbons (PAH's)
   are concerned, no difference between shale oil and
   crude oil has been found.
                                     121
                                                                 (continued)

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                             TABLE  45.   (CONTINUED)
Company/Organization
                    Comments
API
•  Comsumers will see no difference between synfuels  and
   traditional petroleum; after refining and processing
   all products will  meet current specifications;  such
   things as aromatics, trace elements,  etc. will  be
   controlled
•  All petroleum crudes are different and processing  is
   tailored for each crude.  Processing  and refining  of
   synfuels will be very analogus to conventional
   petroleum processing problems

•  Environmental risks with synfuels will be the same as
   for current products
t  When comparing toxicity, synfuels products should  be
   compared with their petroleum analogs; relative and
   not absolute toxicity and impacts should be considered.
                                        122

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                                 TABLE 46.   SUMMARY OF  COMMENTS FROM POTENTIAL SYNFUEL USERS  ON  THE
                                                RELATIVE  CHARACTERISTICS OF SYNFUELS  AND  PETROLEUM
                                                PRODUCTS
    Company/Organization
                                            Comments
    General Motors
    A Major Chemical Company
ro
c*>
    Department of the Navy
    EPRI
•  For the most  part, the users will not Identify  differences between petroleum products and synfuels
•  Refining and  processing will be the key to acceptable use of synfuels.  Suppliers  can process synfuel
   feedstocks to yield any specified products; the extent of processing 1s a matter of  economics
•  Optimum utilization of synfuels necessitates examination of possible engine modifications to take
   advantage of  certain synfuel properties (or to  reduce processing required); e.g.,  higher
   compression engines should efficiently handle hlqhlv aromatic coal liquids.  GM Is Involved 1n R&D work to
   take advantage of certain synfuel  properties and  Is looking at use of less refined products.
•  Major characteristics of suntuels which, unless corrected, may Impact synfuel  utilization are
   high arsenic  content of whole  oil products (Impacting catalytic after burners In  cars), high
   fuel-bound nitrogen content of shale oil products  (yielding NOX emissions 1n excess  of  the standard
   1.0 g/ml), high  aromatic content of coal-derived products which may result In generation of PNA's
   In excess of  what can be handled by existing catalytic converters and high evaporative  emissions
   from use of alcohol as gasoline additive.

•  Synthetic LPG will be similar to the LPG produced  from natural gas; acid qas purification of med1um-Btu gas
   will take out trace contaminants.
•  Some coal liquefaction products may contain higher amounts of PNA and substituted  phenols.  This 1s, however,
   also the current situation with residuals from  pyrolysls of heavy liquids for chemical  production operations.
•  Extensive chemical alterations which take place In chemical operations would also  affect chemical
   alteration of any hazardous constituents

•  Characteristics  of synfuels are under Investigation; some differences (e.g., higher  nitrogen content
   In shale oil  products) have been noted
•  Because of current heavy Investment In equipment,  at least In the next 10-20 years new  fuels should
   meet specifications for use In existing equipment
•  Existing specifications must be modified or new specifications must be drawn up to take care of
   any problems  associated with new fuels (e.g., toxldty or health effects considerations, high
   nitrogen content which can cause gumming, or extensive hydrotreatlng which may destroy  product
   lubricity)
•  In evaluating health effects of synfuels, petroleum products should be used as a baseline;
   emphasis should  be on areas which create  "worse" problems  than petroleum products.

•  Distilled shale  oil products will look much like petroleum products
•  Some form of  combustion modification will be needed with liquid synfuels to  reduce NOX emissions
•  Potential health effect  risks associated  with handling  and end uses of synfuels 1s not known.

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alteration, are not  supported  by  the  data  presented  in  this  report.   These
assertions and statements may  have  been  based  on  an  inadequate  data  base  or
on results of the  studies conducted by the  industry  that  were not  available
to this study.

     As noted in Table  45,  the suppliers generally take the  position that
there will be no discernible or significant  differences between the  refined
liquid products produced  from  synfuels and  the comparable products from
petroleum or natural  gas.   These  synfuels  products will  be produced  to
specifications using  conventional,  well-known  processes.   This, then,
naturally leads to a  concensus among  suppliers that  no  additional  or
special concerns are  warranted.   In the  case of shale  oil, for  example, it
is indicated that  there are no compositions  unique to  shale  oil compared  to
petroleum and that the  physical and chemical  characteristics of synfuel
products will be essentially the  same as those for  refined petroleum
products.    (The products are  processed  to  specifications and the  users
will  identify no significant differences).   It is also  pointed  out that
crude petroleum, as  derived from  various locations,  exhibits a  range of
compositions that  brackets  oil  shale.  Unacceptable  quantities  of  nitrogen,
sulfur, and  arsenic  are removed by  upgrading,  hydrotreating, or other
refining steps.  This additional  processing  or upgrading  is  a matter of
economics.   The trend  in  the U.S.  is  to  upgrade the  bottom of the  barrel,
and the processing and  refining of  synfuels  will  be  very  analogous to
conventional petroleum  processing.

     While expecting  the  suppliers  to produce  synfuel  products  to
specifications, the  potential  synfuel users  indicate an uncertainty
regarding the adequacy  of current  specifications  to  guarantee performance
and environmental  acceptability.   For example, severe  hydrotreating may
destroy or alter certain  characteristics of  fuels,  such as lubricity, so
that trade-offs in processing  to  remove  contaminants versus  preservation of
performance may limit the degree  to which  additional  processing is used.
The users generally  see a need for  some  modification of end  use devices.
Engines and  combustors  must be modified  to  use the  synfuels  efficiently and
cleanly.  In the utilization of both  transportation  and boiler  fuels,
emissions from combustion are  likely  to  be  the primary  constraint.

     In general, the  suppliers expect to produce  most  products  to
specifications so  that  no environmental  problems  over  and above those
present in the marketing  of conventional products should  be  encountered.
Both suppliers and users  indicate  that  in  reviewing  product  characteristics
for regulatory purposes,  synfuel  products  must be compared with their
petroleum analogs  and that  the relative  and  not the  absolute impacts should
be of concern.  If the  existing product  specifications  do not adequately
take into account  health  effect concerns,  the  specifications should be
modified or more appropriate ones  should be  developed.

     The users and suppliers interviewed are generally  involved in tests of
various synfuel products  for both  performance  and potential  environmental
impacts (see Appendix A).   These  tests are  expected  to  determine the degree
                                      124

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of additional  processing required and the acceptability  of  synfuel
products.   For example, Exxon Company, the developer  of  the EDS  process,  is
involved  in test and evaluation (including combustion and toxicology
testing)  of EDS products.   DOE, API, and the Department  of  the  Navy are
sponsoring toxicological testing of several shale oil  products.   General
Motor's  planned synfuel evaluation testing program will  begin with  fuel
characterization and performance assessment in a single-cylinder engine;
these  efforts  will  be followed by the evaluation of possible engine
modifications  for more efficient fuel utilization and full-scale
multi-cylinder and  actual  automobile engine testing.
                                     125

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                                  SECTION 5

        ENVIRONMENTAL ANALYSIS  OF  SYNFUEL  UTILIZATION  AND  POTENTIAL
                    AREAS  OF  MAJOR ENVIRONMENTAL  CONCERN


     This section  reviews  the potential  areas  of  environmental  concern  in
synfuel utilization based  on  the  data  presented  in  Section 4  and,  where
data are unavailable, on estimated or  anticipated characteristics  of  such
products.  The  known  and estimated environmental  significance of product
properties a^e  then related to  the product utilization scenarios developed
in Sections 2 and  3,  and potential environmental  areas requirino more
immediate attention are  highlighted.   In general, the  environmental
analysis is in  "relative"  rather  than  "absolute"  terms, in that properties
and use impacts  of  synfuel  products are  reviewed  in comparison  with those
of their petroleum  analogs.   Because  the synfuel  processes are  largely  in
the evolutionary stages  and considerable efforts  are underway to
characterize synfuel  products,  the analysis and  the environmental
priorities identified in Section  6 should  be viewed as preliminary and
hence  subject to revision  as  the  processes are further refined  toward
commercialization  and new  data  become  available.

5.1  SIGNIFICANCE  OF  REPORTED SYNFUEL  PRODUCTS CHARACTERISTICS

     Table 47 summarizes the  reported  known differences in chemical,
combustion, and  health  effect characteristics  of  synfuel  products  and their
petroleum analogs,  based on the data  presented in Section  4.   The  primary
differences are  the synfuel product's  higher content of aromatics  and fuel-
bound  nitrogen  (FBN)  and greater  emissions of  NOx during  combustion.
Although no actual  test  data  on synfuel  products  are currently  available,
high concentrations of  aromatics  in fuels  have been shown  to  enhance
production of PNA' s during combustion.   The specific substances that
comprise the aromatic and  the FBN  fractions also  determine the
environmental hazards associated  with  products.   No actual data have  been
reported on the  composition of  aromatic  or FBN fractions  in various synfuel
products (or their  petroleum  counterparts).  In  the case  of fuels, high
aromaticity has  been  generally  implicated  in an  increase  in smoke
production; the  limited  combustion data  that are  currently available,
however, do not  indicate higher smoke  levels with all  aromatic  synfuels
(see Tables 40,  41, and 42).   High FBN content can  raise  the  level  of NOx
emissions; the  excess NOx  emissions with synfuels are  believed  to  be
correctable by  combustion  modifications.  The  nitrogen content  of  the
synfuels (and the  high  arsenic  content of  the  crude shale  oil)  can also be
lowered to meet  appropriate fuel  specifications  by  the use of certain
refining processes  (for  example,  hydrotreating for  reduction  of FBN).
Another example  of controlling  undesirable product  characteristics via

                                      126

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                  TABLE  47.   REPORTED  KNOWN  DIFFERENCES  IN  CHEMICAL,  COMBUSTION,  AND  HEALTH
                                 EFFECTS CHARACTERISTICS  OF  SYNFUEL  PRODUCTS  AND THEIR
                                 PETROLEUM ANALOGS
        Product
                              Chemical  Characteristics
                                          Combustion Characteristics
Health Effects Characterisecs
ro

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                                                                  TABLE  47.    (CONTINUED)
ro
oo
              Product
Direct Liquefaction,  Contd.

  H-Coal  naphtha

  EOS naphtha

  SRC II  gasoline

  H-Coal  gasoline

  EDS gasoline

|ndirect  Liquefaction

  FT gasoline

  FT by-product
  chemical

  Mobile-M gasolIne


  Methanol

Gasi fIcatlon

  SNG


  Low/medium Btu gas
           Gasi fier tars,  oils,
           phenols
                                   Chemical  Characteristics
                                           Higher nitrogen, aromatics

                                           Higher nitrogen, aroiiidtics

                                           Higher aromatics

                                           Higher dronidtics

                                           Higher aromatics



                                           Lower aromatics; N  and  S  nil
                                           (Gross characteristics similar
                                           to petroleum gasoline)
Trdces of  metal  carbonyls and
higher CO

(Composition varies  with coal
type and gasifier  design/
operation)

(Composition varies  with coal
and gasifier types,  highly
aromatic materials)
                                     Combustion Characteristics
                                                                                           N/A
                                                                              Higher aldehyde  emissions
                                                                              (Emissions of a wide range of
                                                                              trace  and minor elements and
                                                                              heterocycllc organlcs)
Health Effects Characteristics
                                                                                Non-mutagenlc
                                                                                Non-carcinogenic
                                                                               Affects optic nerve
    Non-mutagenic,moderately
    cytotoxic

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process control  (or in-plant treatment) is the elimination  of  traces  of
carbon monoxide  and nickel carbonyl in SNG via proper operation  of  the
methanator (Reference 37) or use of activated carbon adsorption.

     Table 47 identifies fuel oils from coal liquefaction processes and
crude shale oil  as highly hazardous because of their established mutagenic,
tumorigenic,  and cytotoxic properties.  These hazardous properties, which
are characteristic of high boiling and tarry coal and petroleum  materials,
are caused by the presence of substances such as polycyclic aromatic
hydrocarbons, hetero- and carbonyl-polycyclic compounds, aromatic amines
and certain inorganics (for example, arsenic in crude shale oil)  (Reference
43).  The environmental  concerns in the use of these substances  relate
primarily to  the potential exposure of workers involved in  handling and
processing the raw products and in the management of sludges from storage
tanks or spill clean-up operations.  Workers' exposures can be  reduced by
use of protective clothing; enforcement of appropriate  safety  and
industrial hygiene programs to reduce potential for skin contact; and
proper design and operation of processing, storage, and transportation
equipment to  ensure adequate containment and to minimize the potential for
accidental spills.

5.2  ESTIMATED/ANTICIPATED CHARACTERISTICS OF VARIOUS SYNFUEL  PRODUCTS
     AND ASSOCIATED ENVIRONMENTAL CONCERNS
     In the absence of actual data, and for use in planning  and
prioritizing regulatory and research and development activities,  estimates
have been made in this section of the characteristics of  synfuel  products
that would be expected to be of major potential environmental  consequence,
based on the properties of input and starting  raw materials  and  process
engineering considerations.  Based on these estimates, the potential  areas
of environmental  concern for various anticipated uses are  identified.   The
analysis presented in this section is based on the premise that  even  though
in many cases the petroleum and synfuels products may present  similar types
of hazards, the hazard potential, or the degree of risk,  could be greater
for the synfuel products.

     The estimated product characteristics and the analysis  of the
environmental consequences are summarized in Tables 48, 49,  and  50 for
shale oil products, coal liquefaction products, and coal  gas  products,
respectively.  (The applicable controls and regulatory considerations will
be discussed in Section 5.3).  The expected characteristics  of
environmental concern relate to the known or potential presence  of toxic
substances (including carcinogenic compounds associated with  crude shale
oil and heavy distillates from coal liquefaction and hazardous aromatics),
fuel-bound nitrogen, volatile components and minor and trace elements.
Potential environmental concerns for the anticipated product  uses generally
fall into three categories: occupational exposure, public  exposure and
general environmental pollution.  The occupational hazards affect workers
manufacturing and using the products and personnel involved  in facility
maintenance and product distribution services.  Public exposure  primaril>

                                     129

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              TABLE 48.    SOURCES  AND  NATURE  OF  ENVIRONMENTAL  CONCERNS  IN THE UTILIZATION OF
                               SHALE  OIL  PRODUCTS
      Product
                           Major Anticipated
                                 Uses
                    Expected  Characteristics of
                    Potential  Environmental
                          Consequence
                                 Potential Environmental
                                 Concern for Anticipated
                                        Uses
                            Applicable Controls and Regulatory
                                       Considerations
            Raw Crude
                            Boiler fuel
Co
o
           Hydrotreated
            Crude
Refinery  feed-
stock
                    Toxic substances  including
                    carcinogenic  compounds
                    associated  with high boiling
                    point organics and  the in-
                    organics;  trace elements,
                    fuel-bound  nitrogen  (FBN);
                    volatile components  such as
                    lower molecular weight
                    hydrocarbons
Same as  for crude oil, ex-
cept for significantly
lower concentrations, de-
pending  on the degree
of hydrotreating
                                 Exposure of workers to
                                 product during handling
                                 and  transport; air, water
                                 and  soil contamination as
                                 a  result of spills; and
                                 leaks.  Disposal of
                                 sludges from storage
                                 tanks, spill clean-ups
                                 and  air/water pollution
                                 associated with combus-
                                 tion; disposal of
                                 combustion ashes; emis-
                                 sions of NO,., trace
                                 elements and specific
                                 PNA's during combus-
                                 tion
Exposure of  workers to
product during  handling
and transport;  air,
water and soil  contam-
ination resulting from
spills and leaks;
disposal of  sludges
from storage tanks
and spil1 clean-ups
Design, operation and  maintenance of
storage tanks, pipelines,  pumps and
other equipment to provide for
maximum containment and minimum
potential for spills and  leaks.
Minimize worker exposure  (skin) via use
of protective clothing, enforcement of
appropriate industrial hygiene and
operating practices; development of spill
control contingency programs; employ-
ment of combustion modification to re-
duce air emissions; development and
enforcement of appropriate emission
standards; regulation  of  transportation,
storage and disposal of sludges from
storage tanks and spill clean-ups and
combustion ashes and sludges

Design, operation and  maintenance of
storage tanks, pipelines,  pumps and
other equipment to provide for maximum
containment;  minimize  potential for
spills and leaks;  minimize worker
exposure (skin) via use of protective
clothing and  enforcement of appropriate
industrial  hygiene and operation
practices;  development of  spill
control contingency programs;
regulation of transportation.
sto'-age and disposal of sludges from
storage tanks and  spill clean-ups,
incorporation of environmental
considerations in  specifications
for shale oil  refinery feedstocks
                                                                                                                                      (continued)

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                                                TABLE  48.    (CONTINUED)
Product
                      Major Anticipated
                            Uses
                     Expected Characteristics of
                     Potential  Environmental
                           Consequence
                                  Potential  Environmental
                                  Concern for Anticipated
                                          Uses
                             Applicable  Controls and  Regulatory
                                        Considerations
     Gasoline
Motor fuel
     Jet fuel
 Jet fuel
Can be high in aromatics
(depending on the refining
method used) which may
include toxic substances
such as benzene.* PNA's
and certain trace ele-
ments; volatile components
such as lower molecular
weight hydrocarbons
High aromatics; hazardous
trace elements such as
arsenic; volatile com-
ponents such as lower
molecular weight
hydrocarbons
Inhalation of volatile
matter by service
station attendants and
motorists during fuel
transfer product
handling; potential for
air (and water) pollu-
tion  resulting from
spills and leaks and
evaporative emissions
from storage tanks; poten-
tial adverse effects of
combustion products on
catalytic converters
(e.g., pensioning of
catalyst with arsenic
and excessive amounts  of
PNA's); disposal of
sludges from spills and
storage tanks and
poisoned/used catalysts;
emission of hazardous
combustion products
such as PNA's and trace
elements

Evaporative emissions
during handling, trans-
port, storage and
transfer; air, water
and soil contamination
resulting from spills:
disposal of sludges
from storage tanks and
spill clean-ups;
emissions of hazardous
combustion products and
NOX
Proper design and operation
of sources of evaporative emissions
(transfer lines/equipment, storage
facilities and spills/leaks); develop-
ment of spill control contingency
programs  ; development and enforcement
of appropriate emissions standards;
regulation of transportation, storage
and disposal of sludges from storage
tanks and spill clean-ups; incorporation
of environmental (Including emissions)
considerations in specifications
for the shale-oil product
Same as Motor fuel
  ^Petroleum gasoline contains 0.3 to 3 Vol.? benzene (Reference 36)
                                                                                                                                             (continued)

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                                                                 TABLE  48.    (CONTINUED)
                              Major Anticipated
                                    Uses
        Product
                     Expected  Characteristics of
                     Potential  Environmental
                           Consequence
                                  Potential Environmental
                                  Concern  for Anticipated
                                          Uses
                             Applicable Controls and Reguldtory
                                       Considerations
             OFM
Marine fuels
              Residue
Boiler fuel
CO
f\>
High aromatics  can  imply
presence of toxic  phenolics;
the higher boiling  point
fraction and residue may
contain carcinogenic
organics; high  content  of
FBN
High aromatics can imply
presence of toxic phenolics;
being a high boil ing
fraction, can contain
carcinogenic substances;
high content of  FBN
and trace/minor elements
Exposure of workers  to
products and some evapor-
ative emissions during
handling and transport;
air, water and soil
contamination resulting
from spi1 Is,; disposal
of sludge from storage
tanks and spill
clean-ups; emissions of
hazardous combustion
products

Exposure of workers  to
product during handling
and transport; air,
water and soil contam-
ination resulting from
spills; disposal  of
sludge  from
spill clean-ups and
air/water pollution
control sludges and  ash
associated with
combustion; emissions
of hazardous combustion
products
Same as for Jet fuels,  plus  minimize
worker exposure via  use of protective
clothing, appropriate industrial
hygiene and operating practices;
development of spill  control  contin-
gency [)lan
Same as for untreated  crude  shale oil

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               TABLE 49.    SOURCES AND  NATURE OF  ENVIRONMENTAL  CONCERNS  IN  THE UTILIZATION
                                OF  COAL LIQUEFACTION  PRODUCTS
        Product
                             Major Anticipated
                                  Uses
                     Expected  Characteristics of
                     Potential  Environmental
                           Consequence
                                Potential Environmental
                                Concern for Anticipated
                                       Uses
                            Applicable Controls and  Regulatory
                                      Considerations
        Coal  liquids
          Gasoline
Engine/appliance
     fuel
CJ
CO
          Naphtha
Petrochemical
feedstocks
For direct liquefaction
gasoline,  high contents
of aromatlcs, nitrogen
and volatile toxic
substances  such as
benzene  and toluene
For direct liquefaction
naphtha,  high  content
of nitrogen and volatile
aromatlcs, Including
toxic phenols  and
benzene
Inhalation  of volatile
matter by service
station attendants and
motorists during fuel
transfer and product
handling; potential
for air (and water)
pollution  resulting
from spills and leaks
and evaporative
emissions from
storage tanks; poten-
lal adverse effects
of combustion pro-
ducts on catalytic
converters; disposal
of sludges  from
spills and  storage
tanks and poisoned/
used catalysts; emis-
sion of hazardous
combustion  products

Evaporative emissions
during handling, trans-
port, storage and
transfer; air, water
and soil contamination
resulting from spills;
disposal of sludges
from storage tanks and
spill clean-ups
Strict regulation of desian and opera-
tion of sources of evaporative emissions
(transfer  lines/equipment, storage
facilities and  spills/leaks);  develop-
ment of spill control contingency
programs;  development and enforcement
of appropriate  emissions standards;
regulation of transportation,  storage
and disposal of sludges from storage
tanks and  spill  clean-ups; Incorporation
of environmental (Including emissions)
considerations  in specifications for
the product
Similar to  those for gasoline
                                                                                                                                         (continued)

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                                                          TABLE 49.   (CONTINUED)
                      Major Anticipated
                            Uses
                      Expected  Characteristics of
                      Potential  Environmental
                     	Consequence	
                                 Potential  Environmental
                                 Concern  for Anticipated
                                	Uses
                             Applicable Controls and Regulatory
                                        Considerations
Coal Gases
~~
  LPG
         Feed-

    itro-
  chemlcals
  (ethylene,
  benzene,
  toluene,
  xylene, etc.)
                      Heating fuel for
                      Industrial,
                      commrclal and
                      residential use;
                      chemical feed-
                      stock
Fuel for Indus-
trial/domestic
heating and
appliances and
transportation
and Industrial
equipment;
chemical feed-
stock

Chemical feed-
stocks for
a range of
products In-
cluding
synthetic
fibers,
plastics,
solvents, etc.
                      Traces  of metal  carbonyls,
                      hydrogen sulflde and CO
Coal-derived Impurities
Coal-derived Impurities
 Inhalation hazard
 (asphyxiation can re-
 sult upon exposure to
 air containing high
 levels of major
 components of SNG);
 occupational cancer
 due to prolonged
 exposure to certain
 metal carbonyls

 Inhalation hazards:
 hazardous
 emissions  from
 Incineration of
 Impurities
Depending on the spec-
ific product type/Impur-
ities and uses can
present Inhalation, der-
mal and  Injestlon
hazards to workers and
public and Industrial
users during handling,
transport and use of
products; potential
for air and water
pollution resulting
from spills and leaks
and evaporative emis-
sions from product
storage tanks;  disposal
of sludges from spills
and storage tanks	
                                                              In-plant process control and treatment
                                                              to minimize formation of trace contaminants
                                                              (e.g., proper operation of methanator
                                                              to reduce formation of nlckle carbonyl);
                                                              specification regulrements for SNG
                                                              Identical to those for natural gas
In-plant process control to minimize/
eliminate product Impurities; specification
for requirements Identical  to those for
petroleum LPG
In-plant process control  to minimize/eliminate
product Impurities; development of specifica-
tions similar to those for currently
available Identical products,  or revised
specifications which take Into account
potential environmental  hazards; strict
regulation of design and operation of
sources of evaporative emissions (transfer
linos, storage tanks, spills/leaks); devel-
opment of spill control  contingency plans;
regulation of transportation,  storage and
disposal  of hazardous sludges  from storage
tanks and spill clean-ups
                                                                                                                                            (continued)

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                                                             TABLE  49.    (CONTINUED)
       Product
                             Major Anticipated
                                   Uses
                      Expected  Characteristics of
                      Potential  Environmental
                            Consequence
                                 Potential Environmental
                                 Concern  for Anticipated
                                         Uses
                             Applicable Controls and Regulatory
                                       Considerations
CO
en
         Middle
         distillates
         (Jet fuel,
         kerosene.
         dleiel oil
         and heating
         oil)

         Residuals
         (heavy fuel
         oil, lubri-
         cants, wax
         asphalts)
Fuel for jet air-
craft, gas tur-
bines, dlesel
engines and
residential/
commercial heat-
Ing

Industrial,
utility and
marine fuel;
preparation
of lubricants,
waxes, asphalt
and special
oils
High content of aroma tics
(1n lower cuts), volatile
compounds and toxic  sub-
stances Including
potentially carcinogenic
substances 1n the higher
boiling fractions

Toxic substances Including
potentially carcinogenic
substances In the high
fractions; high nitrogen
content; volatile com-
pounds
Same as for naphtha
Exposure of workers to
product during handling
and transport; air, water
and soil contamination as
a result of spills; and
leaks.  Disposal  of
sludges from storage
tanks, spill clean-ups
and air/water pollution
associated with combus-
tion; disposal of
combustion ashes; emis-
sions of NOv, trace
elements and specific
PNA's during combus-
tion
Same as for Jet fuels; plus (for
heavier cuts) minimize worker
exposure via use of protective
clothing, and appropriate Industrial
hygiene and operating practices
Design, operation and maintenance of
storage tanks, pipelines, pumps and
other equipment to provide for
maximum containment and minimum
potential for spills and leaks.
Minimize worker exposure (skin) via use
of protective clothing, enforcement of
appropriate Industrial hygiene and
operating practices; development of spill
control contingency programs; employ-
ment of combustion modification to re-
duce air emissions; development and
enforcement of appropriate emissions
standards; regulation of transportation,
storage and disposal of sludges from
storage tanks and spill clean-ups and
combustion ashes and sludges
                                                                                                                                            (continued)

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                                                               TABLE  49.   (CONTINUED)
       Product
                            Major Anticipated
                                  Uses
                     Expected Characteristics of
                     Potential  Environmental
                           Consequence
                                Potential Environmental
                                Concern  for Anticipated
                                        Uses
                            Applicable Controls and Regulatory
                                      Considerations
         By-product
         chemicals
         (aldehydes,
         alcohols,
         ketones,  etc.)
Industrial
uses;  chemi-
cal  feed-
stocks
Coal-derived  Impurities
Same as for  petro-
chemicals
Same as  for petrochemicals and
other hazardous cheilcal manufacturing
processes.
CO
a\

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                    TABLE  50.    SOURCES  AND  NATURE OF  ENVIRONMENTAL  CONCERNS  IN  THE UTILIZATION OF
                                    COAL  GASES
        Product
                             Major Anticipated
                                   Uses
                      Expected Characteristics of
                      Potential Environmental
                           Consequence
                                Potential Environmental
                                Concern for Anticipated
                                        Uses
                            Applicable Controls and Regulatory
                                       Considerations
          SNG
          Low/medium-
          Btu gas
CJ
         Methanol
Heating fuel  for
Industrial, com-
merlcal and
residential use;
chemical feed-
stock
Medium-Btu gas:
boiler fuel and
feedstocks for
chemical In-
dustry;
low Btu gas:
fuel for In-
dustrial
 furnaces and
small boilers
Production of
gasoline;
blending with
motor gaso-
line; chemical
feedstock;
Industrial
applications
Traces of metal  carbonyls,
hydrogen sulflde and  CO
A range of toxic  contam-
inants, Including hydrogen
sulflde, carbonyl  sulflde,
hydrogen cyanide,  metal
carbomyl, ammonia and
trace elements
Toxldty (Injeitlon/
Inhalation)  and
evaporative  emissions,
possible presence  of
hazardous coal-derived
Impurities
Inhalation hazard
(asphyxiation can  re-
sult upon exposure to
air containing high
levels of major
components of SNG);
occupational  cancer
due to prolonged
exposure to certain
metal  carbonyls

Worker exposure hazard
resulting from pro-
longed Inhalation  of
contaminants; Inhala-
tion hazard due to
exposure to gas or air
having a high amount
of gas components  (e.g.,
asphyxiation due to
CO Inhalation; emission
of hazardous combustion
products

Exposure of workers and
service station attend-
ants and motorists
(when added to gasoline)
to evaporative emissions
during handling, trans-
fer and transport; air,
water and soil contam-
ination resulting
from spills;  disposal of
sludge from storage
tanks and spill clean-ups
In-plant process control and treatment
to minimize formation  of trace contaminants
(e.g., proper operations of methanator
to reduce formation  of nlckle carbonyl);
specification requirements for SNG
Identical to those for natural gas
Design, operation  and maintenance of equip-
ment to provide for maximum containment
and minimum potential for  leaks and
large-volume accidental  discharges;
minimize worker exposure via use of
protective equipment and acceptable
operating practices; employment of com-
bustion modification to  reduce air
emissions; development and enforcement
of appropriate emissions standards
Strict regulation  of  design and operation of
sources of evaporative  emissions (transfer
lines/equipment,  storage  facilities and
spills/leaks); development of  spill control
contingency programs; development and
enforcement of appropriate emissions
standards; regulation of  transportation,
storage and disposal  of sludges from storage
tanks and spill clean-ups, Incorporation.
of environmental  considerations 1n
product specifications
                                                                                                                                                 (continued)

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                                                  TABLE  50.    (CONTINUED)
Product
Petrochemicals
(tthylene,
propylene,benzene
toluene and
xylene)
Gailfler  t«r»,
oil* and  phenol*
                      Major Anticipated
                            Uses
Chemical feed-
stocks for the
production of a
rang* of product!
(synthetic
fibers, solvent*,
Industrial
commodities)
On-1 He combus-
tion; purifica-
tion and sale
for Industrial
utti and
chemical
feedstocks
                      Expected Characteristics  of
                      Potential  Environmental
                            Consequence
Coal-derived Impurities
Highly toxic aromatlcs,
Including benzene and
phenols; potentially
carcinogenic substances
In tars/oils
                                 Potential  Environmental
                                 Concern  for Anticipated
                                         Uses
Depending on the spec-
ific product type/Impur-
ities and uses, can
present Inhalation, der-
mal and Injestlon
hazards to workers and
public and Industrial
users during handling,
transport and use of
products; potential
for air and water
pollution resulting
from spills and leaks
and evaporative emis-
sions from product
storage tanks; disposal
of sludges from spills
and storage tanks
Emission of hazardous
combustion products
(when burned on-slte);
exposure of workers
during handling and
transport; potential
air and water pol-
lution resulting
from spills and leaks
and evaporative emissions
from product storage
tanks; disposal of
sludges from product
storage tanks and spill
clean-ups
                             Applicable Controls and Regulatory
                                        Considerations
In-plant process control to minimize/eliminate
product Impurities; development of specifica-
tions similar to those for currently
available Identical products, or revise
specifications to take Into account
potential environmental hazards; strict
regulation of design and operation of
sources of evaporative emissions (transfer
lines, storage tanks, spills/leaks); devel-
opment of spill control contingency plans.
regulation of transportation, storage and
disposal of hazardous sludges from storage
tanks and spill clean-ups
Development and enforcement of appro-
priate standards for combustion of
by-products; strict regulation of design
and operation of sources of evaporative
emissions (transfer lines, storage tanks,
spills/leaks); development of spill
control contlnengency plans; minimize
worker exposure via requirement for use
of protective clothing,  enforcement of
appropriate Industrial  hygiene and
operating practices; development of spill
control contingency programs; regulation
of transportation, storage and disposal
of sludges from storage  tanks and spill
clean-ups and combustion ashes and
sludges

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relates  to air pollution resulting from product uses such as  gasoline  in
automobiles (for example, motorists at service stations), and  hazardous
fugitive emissions from storage tanks, product transfer points,  leaks/
spills,  and product uses (for example, products produced from
petrochemicals).  Accidental spills and activities related to  the
management of sludges from product storage tanks and spill clean-ups,  and
solid,  liquid and gaseous wastes associated with combustion and
combustion-related air pollution control would all contribute  to general
environmental pollution.

5.3  APPLICABLE CONTROLS AND REGULATORY CONSIDERATIONS

5.3.1 Applicable Controls and Mitigation Measures

     Tables 48, 49, and 50 summarize some of the control measures  and
regulatory considerations for the mitigation of the major environmental
concerns identified for various anticipated uses of synfuel products.  The
occupational  exposure to synfuel products could be minimized  through
development and enforcement of OSHA-type regulations that would  lead to the
proper  design, operation, and maintenance of product storage  tanks,
pipelines, pumps, and other equipment to provide for maximum  containment
and,  hence reduced evaporative emissions and minimum potential for spills
and leaks.  Workplace-related controls could also include requirements for
use of  protective clothing, adherence to strict industrial hygiene and
operating practices, and development of spill control contingency  plans.

     The risk of public exposure can be reduced by developing  and  enforcing
(1) product specifications that take into account the potential  direct or
indirect (for example, via emissions of hazardous combustion  products)
health  hazards to users; (2) emissions standards for stationary  and mobile
combustion sources using synfuel products; and (3) requirements  for
installing appropriate equipment or devices that would reduce  emissions
during  product transfer (for example, use of vapor recovery systems on
gasoline service station pumps/lines).  The potential for contamination
stemu ing from waste disposal and spill control activities can  be minimized
by developing and enforcing regulations for proper storage, transportation,
and disposal  of synfuel product wastes that would significantly  threaten
the environment and public if they were improperly managed.

     Only some of these environmental concerns and regulatory considera-
tions are covered under existing or proposed environmental  regulations.
For the  remaining areas of concern, new legislations and  regulations would
be required.   A review of some of the provisions of the existing  federal
regulations relevant to the environmental issues associated with  synfuel
product  utilization is presented in the following section.  State
regulations and local ordinances are too numerous and are not covered  here.
                                      139

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5.3.2  Significant Relevant  Statutes  and  Regulations

     Six major federal  environmental  statues  that  would  have  bearings  on
some of the environmental  concerns  discussed  here  are  the  Occupational
Safety and Health Act  (OSHA);  Toxic Substances  Control Act (TSCA);  Clean
Air Act (CAA); Resource Conservation  and  Recovery  Act  (RCRA);  Clean Water
Act; and the  Comprehensive Environmental  Response, Compensation,  and
Liability Act  (Superfund legislation).

     Toxic Substances  Control  Act  (TSCA)

     The Toxic Substances Control  Act authorizes EPA  to  promulgate
regulations  for  the  control  of substances or  mixtures  of substances that,
in  EPA's judgment,  present an  unreasonable risk to health  and to  the
environment  through  their manufacture,  processing, and distribution in
commerce, use, or  disposal.   Such  regulations may  prohibit the manufacture,
processing,  etc.,  of certain substances and impose restrictions on  others.
The Act also  directs EPA to issue  regulations for  testing, premarket
notification, and  reporting and retention of  information.   Under  Section  4
of  TSCA,  EPA is  empowered to require developers to develop adequate data
with  respect  to  the  effects of their products on health  or the environment.
Where  an  industry  such as the  synfuel industry has not developed  sufficient
data  and where EPA  finds that  unreasonable risks may  occur, TSCA grants the
authority to require that testing  be-performed.

      Under  TSCA, premanufacture notices  (PMN's) must  be  submitted on
chemicals not listed in a Chemical  Substance  Inventory.   Many synfuel
substances  are  not  included in the Inventory  and therefore require  a PMN.
Other  synfuel products  (for example, methanol) are present in the TSCA
 Inventory,  but  unless EPA operates on the premise that synfuel products are
 inherently  different from their existing commercial counterparts and
 represent  new products/uses, a PMN may be required.  A PMN, which must be
 submitted  to EPA at least 90 days   before beginning commencement of
manufacture  for  commercial  purposes, requires the following data:

      1)   Chemical  composition of  the products

      2)    Details  on mode of use

      3)    The projected  production volume

      4)   A characterization of the  by-products and emissions  resulting
           from the manufacturing process and characterization  of the
           product  of combustion during its intended use

      5)    Characterization  of  human  exposure during the manufacturing
           process  and  use of the products

      6)    Method by which manufacturing  and  processing  wastes  are  disposed
           of.


                                      140

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     If  EPA determines that sufficient data have not been submitted  to  make
a reasonable assessment of the risks posed by a synfuel product
and believes that  the product may present an unreasonable risk to man or  to
the environment,  it  could restrict the manufacture or use of the product.

     The authority of TSCA extends to products/by-products of the synfuel
industry that  are  on  the Inventory or that have already passed through  a
PMN process if EPA determines, on the basis of new data, that additional
data  reporting and testing are required.   At the present time, synfuel
producers are  being  requested to contact the Office of Toxic Substances
within EPA to  determine whether their products are on the TSCA Inventory  or
will  require a PMN.   EPA's approach to the regulation of synfuel products
under TSCA is  still  being formulated.

     Clean Air Act (CAA)

     The Clean Air Act provides the EPA the authority to regulate new and
existing sources  of  air pollution in order to attain and maintain levels  of
air quality that  will protect public health and welfare.  To date, most
existing and planned  air quality regulations developed under the CAA focus
on criteria pollutants (that is, SO  , NOX, CO, particulate matter) in
ambient  air.  Criteria pollutants associated with synfuel utilization are
expected to be emitted from fuel transportation, storage, and combustion  in
utility  and industrial boilers, residential/commercial furnaces, gas
turbines and various  mobile sources.  Current New Source Performance
Standards (NSPS)  for  fossil-fuel-fired power plants contain special
standards for  facilities using certain synfuels.

     At  the present  time, regulations are planned that will set  standards
for industrial boilers and stationary internal combustion engines;
currently no emissions standards for commercial and residential  boilers  and
heaters  exist.  There are also no emissions standards for the
transportation and handling of either petroleum or synfuel products  from
production and refining sites to end-use locations.  However, New Source
Performance Standards (NSPS) were recently promulgated on petroleun
storage, and they  include storage requirements for synfuels.  NSPS's are
also planned  for volatile organic carbon  (VOC) emissions  from  aasoline  bulk
terminal loading  facilities, including tank trucks.

     Resource Conservation and Recovery Act (RCRA)

     Under RCRA,  EPA has broad authority for the identification  and
regulation of the handling, transportation, and disposal of hazardous
wastes.   Wastes currently listed as  hazardous under RCRA from both  specific
and non-specific  sources do not include synfuel products/by-products per
se.  However,  certain chemical products and manufacturing chemical
intermediates  listed as toxic materials in RCRA paragraph 261.33f  (May  19,
1980 Federal Register) may be present in certain synfuel products  (for
example, benzo(a)anthracene).  Disposal of spills of these  products  would
be subject to RCRA jurisdiction if  quantities exceeded  1,000 kg.   Certain
additional commercial products and  manufacturing chemical  intermediates

                                      141

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listed as toxic  materials  in  RCRA paragraph  261.33e (for example,  nickel
carbonyl) may  also  be  present  in  synfuel  products  (for example,  SNG).
Disposal of  spills  of  these  products  would  come under  RCRA regulation  if
quantities exceeded 50 kg.

     Wastes  from  the combustion  of synfuels  have  not  been regulated.   RCRA
currently exempts as "special  wastes"  fly ash  and  other products generated
primarily from the  combustion  of  coal  or  other fossil  fuels.   Synfuel
sludges  (for example,  those  resulting  from  product storage)  are  not  listed
as hazardous wastes under  RCRA but must  be  evaluated  for possible  listing.
Waste packing, seal ings, oil,  and various residues that may  be generated
during synfuel utilization may become  identified  as hazardous  wastes  under
RCRA and come  under subsequent regulation as further  information is
obtained on  the  characteristics  of these  wastes.   Management  of  specific
wastes under RCRA is an  evolving  process, and  it  would be very timely  to
bring to the attention of  EPA's  Office of Solid Waste  some of  the
environmental  concern  associated  with  synfuel  wastes.

     Clean Water  Act (CWA)

     The Clean Water Act provides EPA  with  authority  to regulate point
source discharges of pollutants  and spills  of  oil  and  hazardous  materials
in order to  protect the  quality  of navigable waters.   The Act  directs  the
EPA to promulgate and  enforce  national  standards  of performance  for  all  new
sources  and  pretreatment standards for industrial  discharges  into  publicly
owned treatment  plants and to  control  discharges  of toxic substances.   To
date, no NSPS  standards  have  been promulgated  for  the  synfuel  industry,
although the Effluent  Guidelines  Division of EPA  is currently  involved in
major studies  to  develop background data  for regulation of the energy
industry.  Section  402 of  the  FWPCA,  National  Pollutant Discharge
Elimination  System  (NPDES),  authorizes an EPA- or  state-administered  permit
system for discharges  into navigable waters.   The  permit for a point  source
discharge specifies the  materials and  quantities  to be discharged,
discharge conditions,  and  the  monitoring  and reporting systems to  be  used.
Many pollutants  (for example,  phenolic compounds)  currently  regulated  under
effluent guidelines for  other  industries  are present  in synfuel  products/
by-products  and  wastes.  It  is anticipated  that these  will be  regulated  via
NPDES permits  for individual  facilities  producing  and  using  synfuel
products.

     Under the CWA,  several  spill  control regulations  apply  to the  storage
of certain synfuel  materials.   However,  these  regulations are  not  complete
and there are  still  several  regulatory unknowns concerning the transport of
synfuel   products  over  or near  waterways.

     Occupational Safety and Health Act  (OSHA)

     This act authorizes the U.S.  Department of Labor  (DOL)  to set
mandatory standards to safeguard  the  occupational  safety and  health  of all
employers and employees of businesses  engaged  in  interstate  commerce.
Among the standards  promulgated  to date  under  OSHA are those  oertaining  to

                                      142

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worker exposure to toxic and  hazardous  air  contaminants, many of which are
identified as potential constituents  of  SNG and  by-products.   Table 51
lists OSHA standards for some of  the  materials  that  are known or expected
to be present in SNG and coal gasification  by-products.   Such products and
by-products may subject plants  providing and using coal-derived SNG and
by-products to OSHA regulations.   The presence  of the substances shown in
Table 51 in the ambient environment  in  such facilities may result from
fugitive or evaporative emissions  from  various  production, transportation,
and  storage units; from accidental  spills;  or from equipment or system
failure.  For many of  these  substances,  OSHA standards are not expected to
be exceeded under normal operating conditions primarily because of the
closed nature of many  of the  facilities  producing and using SNG and coal
gasification by-products.   For  some  highly  volatile  substances such as
benzene, evaporative emissions  must  be  controlled in order to comply with
the  ambient standards.

    Under the authority of  OSHA,  regulations have been promulgated
relating to exposure to some  17 occupational carcinogens.   Although some of
the  regulated carcinogens  (for  example,  benzidine and naphthylamines) are
expected to be present  in  SNG tars and  oils, it  is not envisioned that
their concentrations would  exceed  those  levels  that  would make the by-
products subject to OSHA regulations.  The  National  Institute of
Occupational Safety and Health  (NIOSH)  has  published a list of suspected
carcinogens covering some  1500  chemical  substances.   Some of these
substances would be present  in  SNG product/by-products and are subject to
future  regulations by  OSHA.

    The existing OSHA ambient  regulations  cover the majority of substances
that are known to be present  in SNG  products and by-products.  As better
and  more detailed composition data become available for such materials and
for  materials from other synfuels  processes, it is possible that additional
OSHA regulations may be developed covering  toxic substances not yet
identified in SNG and  other  synfuel  products and by-products.

    To date, OSHA regulations  affecting synfuels have been directed  at
specific compounds.  Safety  regulations based on OSHA can also be aimed  at
an entire  industry, but  such regulation is  not anticipated for synfuels.
At the  present time, OSHA  does  not have any on-going work dealing with
synfuels  (Reference 44).   However, NIOSH is interested in synfuels.
Concern over possible  hazards caused by synfuel  production  (Reference 45)
and  use was  indicated  in a recent journal article by several OSHA
personnel.   Comparison with  analogous fuels was the basis for  speculation
on the  hazards of synfuels.   Regulation and control  of identified hazardous
chemicals  was advocated.

    Comprehensive Environmental Response,  Compensation,  and Liability  Act
     (Superfund Legislation)

    The  superfund  legislation, recently signed  into  law, authorizes
federal action to contain  and clean  up  spills and other  releases  of
hazardous  substances,  as well as abandoned  disposal  sites.   Under  the

                                     143

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TABLE  51.   OSHA STANDARDS  FOR MATERIALS KNOWN  OR  SUSPECTED  TO BE
                PRESENT  IN  LURGI  SNG  PLANTS  (37)
Q* "iHMjnd
Acetic acid
Arnonu
Aniline (siin)
Antincny
Arsenic
Benzene
Beryl liura
Butyl nercaptan
Cadmium (iust)
Carbon dioxide
Carbon disulfide
Carbon monoxide
Carbon tetrachloride
Chromium, soluble salts
Chromium, Insoluble salts
Coal dust (<5: Si02)
(>:-. Sio2)
Coal tar pitch volatile* *
Cresol (skin)
Ethyl benzene
Ethyl nercaptan
Hydrogen chloride
Hydrogen sulflde
Hydrogen cyanide
Lead and Inorganic lead
compounds
Manganese
Mercury
Hethanol
Methyl mercaptan
Naphtha (coal tar)
Naphthalene
Nickel carbonyl
Nickel metal and soluble
compounds (as Hi)
Nitrogen dioxide
Phenol (skin)
Propane
PyHdlne
Selenium compounds
Silica (respirable)
(total dust)
Styrene
Sulfur dioxide
Toluene
Vanadium
Xylene
T'.JA , • I'pn
10
50
5
--
--
10(1)
--
10
--
5000 (10.000)
20(1)
50(35)
10
--
--
--
--
--
5
100
--
--
--
in
—

--
--
200 (200)
--
100
10
0.001
—

5(1)
5
1000
s
"
—
"
100
5(2)
200 (100)
—
100 (100)
Ti.\; „„,•„•>
r*j
35
•o
0.5
0.5

o.oj> (o.oo:)
35
0.2 ( 04)
9000 (13,000)
--
55
1
0 5 (0 025)
1
2.4
0.10
0.2
22
35
435
--
--
--
0.2 (0.10)

--
0.1 (0.05)
260
--
400
50
0.07
1

9
19 (20)
1800
15
0.2
0.10 (0.05)
0.30
--
13
--
(1)
435
''i 1 i'i l.l'.'ii1 1. 01 1 Ill'l
LiMiivnri .it um
-.
M)
--
--
(.00? mg/ro3)
?5 ppn
005 r)/n3
--
0.6 mg/m3 (0,2 n.g/m3)
(30, COO ctn)
30 ppm ( 1 0 ppm)
(200 ppm)
25 ppn
(0.05 mg/n3)
--
--
--
--
--
--
10 ppm
5 ppm
20 ppm (10 ppm)
25 ppn
—

5 mg/m-'
--

10 ppm

--



--
(60 mg/m3)
--
--
--

--
--
--
—
(0.05 mg/m3)
--
I/ho o Found
GJ^ sliiMi'1, mi liquor
Gas stream, gjs lii|nor

Trace element in coal
Trace elenent in coal
Gas strejn, njrhtha
Trace clement in coal
Gas stream, naphtha
Trace elercnt 'n real
Gas stream
Gas stream
Gas stream, product SNG
Laboratory

Trace element in coal
Coal preparation areas

Gas stream, tars, oils
Gas stream, naphtha
Gas strcan, napth;<
Gas stream, naphtha
Stream
Gas stream
Gas strcan
Trace elenent in coal

Trace element in coal
Trace elenent in coal
Rectlsol solvent
Gas stream
Gas stream, tars, oils
Gas stream, tars, oils
Hethanation areas, product SNG
Trace element in coal

Incinerated wastes, boiler flue gases
Gas and gas liquor
Gas stream
Gas stream, tars, oils
Trace element in coal



Incinerated wastes, boiler flue gases
Gas stream tars, oils
Trace clement in coal
Gas stream, tars, oi Is
Time-weighted average.  Numbers in parentheses  indicatP HIOSH recomwnded standards
fCoal tar pitch volatile;, as ixasurcd  by the benzene-soluble fraction of particulate matter, includes such polycyclic
 aromatic hydrocarbons as anthracene, b^nzotajpyrenr, phenjnthrene, acrldine, chrysen^, and p/rcnc.
                                              144

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mandate of the superfund legislation,  liability  can  be imposed on the
generators of the hazardous substances  to  compensate for cleanup expenses
and damage to persons or property.   Additional  interpretations and
ramifications of the superfund  legislation  are  expected as the Act is
implemented.  Spills of synfuel  products/by-products that are considered
hazardous would be subject to  superfund mandates.

5.4  ENVIRONMENTAL IMPACTS ASSOCIATED  WITH  VARIOUS  PRODUCTION AND USE
    SCENARIOS AND REGIONAL CONSIDERATIONS
    As will  be discussed in Section  6,  for  near-term regulatory planning
purposes certain shale oil products,  medium-Btu  gas,  and coal  liquids have
been identified as presenting  greater environmental  concern.   Figures 17
through 23 present the quantities  and utilization  patterns for shale oil,
low-/medium-Btu gas, and  direct  and  indirect liquefaction products, based
on the data summarized in Section  3.3.5.   Similar  diagrams can be developed
for other scenarios.  As  noted  in  these  figures, except for oil  shale in
the 1988-1992 and 1993-2000 time  frames  (Figure  18)  and direct coal
liquefaction in the 1993-2000  time period  (Figure  23), the transportation,
distribution, and use of  products  are expected to  be  confined  to the
region(s) where each synfuel is  produced.   This  implies that  the
environmental impacts associated with product  utilization are  expected to
be confined primarily to  the production  regions, except for impacts
associated with the natural transport of pollutants  across regional
boundaries (for example,  transport of air  pollutants  emitted  from
combustion sources).  The projections shown  in Figures 17 through 23
indicate that up to the year 2000  under  Scenario II  the environmental
impacts of synfuel product utilization would be  expected to be largely
limited to EPA Regions V  and VIII  for oil  shale  (Figures 17 and 18), to EPA
Regions IV, VI, and VIII  for medium-Btu  gas  (Figure  19), to EPA Regions
III, IV, and VIII for indirect  coal  liquefaction products (Figures 20 and
21) and to EPA Regions III, IV,  and  V,  for direct  liquefaction products
(Figures 22 and 23).

    A detailed discussion of  the  projected  synfuel  production,
distribution, and utilization  patterns  and their regional environmental
impacts are presented in  the following  paragraphs, using shale oil and
low-/medium-Btu gas (Figures 17  through  19)  as  examples.

5.4.1   Shale Oil Products

    Figure 17 presents the estimated quantities and utilization  pattern
for the shale oil products under Scenario II and the 1980-1987 time  frame.
As noted in the figure, an estimated 77,000 BPD  of shale oil  will  be
produced (in EPA Region VIII);  the shale oil will  be hydrotreated  and
refined into middle distillates  (57,000  BPD), gasoline  (13,000 BPD), and
residuals (7,000 BPD) which will  be  used by various  commercial,
residential, and  industrial establishments for heating  and transportation
                                     145

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          PRODUCTION
          REGION VIII
en
       HYDRO-
       TREATING
REFINERY
REGION VIII
                                                 o
                                                 3D
                                                 o
                                                 m
                                                 o
                                                 o
                                                 3)
                                                 C
                                                 O
                                                                            MID DISTILLATES
                                                                           JiT	
                                                                            REGION VIII
                                                                           GASOLINE
                                                                           13
                                                                            REGION VIII
                                                                            RESIDUALS
                                                                            7
                                               REGION VIII
                                                                                                12.3
                                                                    2.3
                                                                                                3.7
                                         0.7
                                                                                                0.2
                                                                                                       RESIDENTIAL
                                                                                                       COMMERCIAL
                                                                           INDUSTRIAL
                                                                                                       TRANSPORTATION
                                                                                                       ELECTRIC UTILITIES
                                                                                                       COMMERCIAL
INDUSTRIAL
                                                                                                       TRANSPORTATION
                                                                           COMMERCIAL
                                                                           INDUSTRIAL
                                                                           TRANSPORTATION
                                                                                                       UTILITIES
                                                                                                    -I  BOILER FUEL
               FIGURE  17.
Estimated Utilization  Pattern  For Shale Oil  Products;
Scenario II,  1980-1987 Time  Period  (Amounts  Shown Are
lO^  BPD Oil  Equivalent; S Designates  Storage)

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PRODUCTION
REGION VIII
                                 REFINERY
                                 REGION VIII
                                  REFINERY
                                  REGION V
                                                        MID DISTILLATES
                                                        155
                                                        REGION VIII

                                                        GASOLINE
                                                        36
                                                        REGION VIII
                                                        RESIDUALS
                                                        19
                                                        REGION VIM
                                                        MID DISTILLATES
                                                        148	
                                                        REGION V AND VII
                                                        GASOLINE
                                                        34
                                                        REGION V AND VII
                                                        RESIDUALS
                                                        18
                                                        REGION V
          FIGURE 18.
Estimated  Utilization  Pattern  For Shale Oil  Products;
Scenario  II, 1988-1992 and 1993-2000 Time  Periods
(Amounts  Shown Are  103 BPD Oil  Equivalent;  S Designates
Storage)
                                                                                       TRANSPORTATION
                                                                TRANSPORTATION
                                                                                       UTILITY
                                                                                       INDUSTRY
                                                                                       TRANSPORTATION
                                                                                       UTILITY
                                                                                       INDUSTRY
                                                                                       TRANSPORTATION
                                                                                       TRANSPORTATION
                                                                                       TRANSPORTATION

-------
           PRODUCTION
           (REGION IV)
                                 MEDIUM
                                 BTU GAS
                                 30
                                 REGION IV
                                          BOILER FUEL
                                                    CHEMICAL FEEDSTOCK
           PRODUCTION
           (REGION VI)
                                 MEDIUM
                                 BTU GAS
                                 30

                                 REGION VI
                                 TARS, OILS
                                 0.98 - 1.9

                                 REGION VI

                                 PHENOLS
                                 0.15-0.30

                                 REGION VI

                                 NAPHTHA
                                 0.25  0.72

                                 REGION VI
                                          BOILER FUEL
                                       CHEMICAL FEEDSTOCK
                                 S H  CHEMICAL FEEDSTOCKS
                                 SH  CHEMICAL FEEDSTOCKS
                                 SH  CHEMICAL FEEDSTOCKS
           PRODUCTION
           (REGION VIII)
                    MEDIUM
                    BTU GAS
                    30

                    REGION
                    VIII
                                 TARS, OILS
                                 0.98  1.9

                                 REGION VIII

                                 PHENOLS
                                 0.15-0.30

                                 REGION VIII

                                 NAPHTHA
                                 0.25  0.72

                                 REGION VIII
                                                       BOILER FUEL
                                      CHEMICAL FEEDSTOCK
                                 S H  CHEMICAL FEEDSTOCKS
                                 SH  CHEMICAL FEEDSTOCKS
                                 S H  CHEMICAL FEEDSTOCKS
Figure  19.
Estimated Utilization Pattern  for Low-/f1edium-Btu Coal Gas:
Senario  II, Period  1980-1987; Production  and  Utilization
Patterns for the  1988-1992 and 1993-2000 Are the Same  As
Shown  Here But Production Quantities Differ  (Amounts Shown
Are  10  BPD Oil Equivalent;  S  Designates Storage)
                         148

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                                                 COMMERCIAL
 PRODUCTION
 REGION VIII
              100
                        GASOLINE
.64.5 i
REGION VIII '
' 3-5 (^)
\ 60-5 /7N
xiy
INDUSTRIAL I

TRANSPORTATION I
MID DISTILLATES
2.5
REGION VIII
RESIDUALS
0.7
REGION VIII \
SNG
32.6
REGION VIII
LPG
0.1 |
' REGION VIII ^
0-2 /T\
/ W
°'4 (^)
o.oe /^TN
\ °-02 r^

0.07 ^
I (!L)
' 0.01 s~\
\ 0.02 /TN


COMMERCIAL

INDUSTRIAL

TRANSPORTATION I

ELECTRIC UTILITIES 1


RESIDENTIAL I

COMMERCIAL

INDUSTRIAL
0.3 ,
(— ~ 	 (
0.27 ,
I (
0.4 (
1.5 /
\
0.03 t
\
10.7
	 ~ — (
6.9
I 	 (
12.2 .
0.8 ,
\
2.0 ,
\
                        TARS, OILS, PHENOLS
                         REGION VIII
                                                                                   RESIDENTIAL
                                                                                   COMMERCIAL
                                                                                   INDUSTRIAL
                                                                                   TRANSPORTATION
                                                                                   ELECTRIC UTILITIES
                                                                      RESIDENTIAL
                                                                                   COMMERCIAL
                                                                                   INDUSTRIAL
                                                                                   TRANSPORTATION
                                                                                   ELECTRIC UTILITIES
                                                                                   CHEMICAL FEEDSTOCKS
                                                                                   BOILER FUEL
FIGURE 20.
Estimated  Utilization  Pattern For  Indirect Coal  Liquefaction
Products;  Scenario  II,  1988-1993 (Amounts Shown  Are 10  BPD
Oil Equivalent; S Designates Storage)

-------























PRODUCTION
REGION VIII























PRODUCTION
REGION IV







PRODUCTION
REGION III

























s — ^ ?nn
/ r )
\^J RFC; ION
VIII





















GASOLINE
/7\ 15° /
^D REGION IV \






GASOLINE ,
,0x300 1
W REGION III \



0.9
I^AQPil IMP /

Q 129 / 7.Q

\
\ 121.1


21.4


13.8
CM/"*
OPiU
/O\ ^^ 24-4


1.6


4.0
UlLoLL 1 Ut L
©c n
o.u

0.4
/
/
RESIDUE / °-8
/Oj 1'4 /
W \ 0.15
\
\
\ 0.05


0.14
LPG /
Lru /
/T\ °-2 / °-02
vL/ \
\ ««>,
\ 0.04


/T\ 1-0


®0.5


\ 0, 14«-5
\ J

/T\ 2-4

f
©1.2


\ (0, 296.4

PHMMPRPI Al


IKini ICTDI Al


TQ AMCPADTATIHM


RPQIHPMTI Al


POMMFRTIAI


IKIDI IQTRI Al


TR AMCOODT ATirMM


Fl PPTHIP NTH ITIPQ



PHMMPRPI Al


IKini IQTRI Al

TRANSPORTATION


PI PPTPIP IITM ITIPQ


DPQinPMTlAI
ntOlUtiN 1 IML

P/^MMP RPI A 1


IfUfM ICTD 1 A 1
IrJUUo 1 nIAL

POH4IUIP DPI A I
UUMMt n^lAL

IMHI IQTRI Al


TR AKjcpPiRTATlON


rOMMFRriAl


IKIHI IQTRI Al


TRANSPORTATION

Figure 21.  Estimated Utilization Pattern  for  Indirect coal Liquefaction
            Products; Scenario  II, 1993-2000 (Amounts Shown Are 20  BPD
            Oil Equivalent; S Designates Storage)
                                  150

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PRODUCTION
REGION V
                 50
REFINERIES
REGION V
                                                     NAPHTHA
                                                     15.4
                                                    REGION V
                                                     MIDDLE
                                                     DISTILLATES
                                                     18.7
                                                     REGION V
                                                     RESIDUALS
                                                     10.0
                                                     REGION V
                                                     LPG
                                                     5.9
                                                     REGION V
                                                 S ) 15'4?  | CHEMICAL FEEDSTOCKS
                                                                                  RESIDENTIAL
                                                                                  COMMERCIAL
                                                                                  INDUSTRIAL
                                                          INDUSTRIAL
                                                                                  RESIDENTIAL
                                                          COMMERCIAL
                                                                                  INDUSTRIAL
       FIGURE 22    Estimated  Utilization  Pattern For  Direct Coal  Liquefaction
                    Products;  Scenario  II,  1988-1992 Time Period  (Amounts Shown
                    Are 10   BPD Oil Equivalents; S Designates Storage)
                                                                                  TRANSPORTATION
                                                                                  ELECTRIC UTILITIES    I
                                                                                  	j
                                                                                  TRANSPORTATION
                                                                                  ELECTRIC UTILITIES
                                                                                  TRANSPORTATION

-------
                              KD
                                  NAPHTHA
                                  154
                                  MIO DISTILLATES
                                  187
                               x—\ 154? I             i
                              -(S)	1 CHEMICAL FEEDSTOCK |
                                  RESIDUES
                                  100
                                                    RESIDENTIAL
                                                   COMMERCIAL
                                                   INDUSTRIAL
                                                    TRANSPORTATION
                                                    ELECTRIC UTILITIES
                                                    COMMERCIAL
                                                    TRANSPORTATION
                                                    ELECTRIC UTILITIES
                                             Tvli.
                                                308 >


                                                44
                               {T)	'—\ CHEMICAL f EEOSTOCK J
{ RESIDENTIAL
{ COMMERCIAL
{ INDUSTRIAL
1
1
1
\ TRANSPORTATION J

{ RESIDENTIAL
| COMMERCIAL
1
1
{ INDUSTRIAL |
| TRANSPORTATION ]
                                                                         -|  TRANSPORTATION J
FIGURE 23.
Estimated Utilization  Pattern For  Direct Coal  Liquefaction
Products; Scenario  II,  1993-2000 Time  Period  (Amounts  Shown
Are  10^  BPD Oil Equivalent;  S Designates Storage)
                                          152

-------
purposes.*  The estimated  crude  shale oil  production rates under Scenarios
I  and III for the 1980-1987  time  frame will  be 219,000 BPD and 340,000 BPD,
respectively.  Except  for  higher  quantities  of the products, the relative
amounts of the products  for  Scenarios I and  III are expected to remain the
same as those shown  in  Figure  17  for Scenario II.  In the 1980-1987  time
frame for all three  scenarios,  the  production, transportation, refining,
distribution, and uses  of  shale  oil  products, and hence the associated
environmental impacts,  are expected  to be  almost totally confined to EPA
Region VIII.

    Information  similar to  that  shown in  Figure 17 for the 1980-1987 time
period is presented  in  Figure  18  for the 1988-2000 time frame.  For
Scenario  II during this  time frame,  an estimated 410,000 BPD of shale oil
will be produced  and hydrotreated in EPA Region VIII; the hydrotreated
product will be transported  by pipelines to  refineries in Regions VIII and
V  and refined into gasoline, middle  distillate, and residuals.  It is
anticipated that  direct  use  of hydrotreated  shale oil as boiler fuel would
be insignificant  during  this time frame.

    Except for some of  the  products refined in Region V that would  be
shipped to users  in  Regions  VII  (for example, gasoline and middle
distillates), for all  practical  purposes the distribution and use of
refined shale oil products,  and  hence the  environmental impacts associated
with such refining,  distribution, and use, are expected to be largely
confined  to Regions  VIII and V.   Except for  higher production levels and
product quantities for  Scenarios  I  and III (437,000 BPD and 750,000  BPD of
crude, respectively),  the  refining  and use patterns shown in Figure  18 are
also applicable to production  Scenarios I  and III.

    The  hydrotreated  shale  oil  would be transported from production sites
to refineries through  pipelines.   Depending  on the relative location and
capacity  of the existing pipelines  feeding refineries, these same pipelines
or new, dedicated pipelines  will  be  used to  transport hydrotreated shale
oils.  The use of existing  pipelines would most likely involve some  degree
of blending of shale oil and petroleum crude.  At present, it is very
difficult to forecast  which  specific refineries will receive the
hydrotreated shale oil  and  what fraction of each refinery's total feedstock
will be comprised of hydrotreated shale oil.  Within a refinery,
considerable blending  of various  shale oil and petroleum  intermediate  and
process streams would  be expected to take place and the final products
which will be produced  to  specifications (aromaticity, viscosity,
volatility, etc.) are  expected to be composites of shale  oil and petroleum
products  and to contain  varying fractions of shale oil-derived material.
*Some  shale  oil  developers have indicated that at  least  some  hydrotreated
shale  oil may  be initially used directly as boiler fuel  if  the
transportation  links  are not in place to carry the hydrotreated  shale oil
to refineries.
                                     153

-------
     The total, overall  contributions  of  shale  oil  to  various  products  used
in EPA Region VIII  (the  region of maximum  use under Scenario  II)  are
presented in Table 52 for  1980-1987  and 1988-2000  time periods.   As noted
in the table, the shale  oil would account  for a  substantial percentage  of
the total feed to refineries  in  Region VIII  (13.3  and  35.6  for the
1980-1987 and 1988-2000  time  frames,  respectively)  and hence  would be
expected to have significant  impacts  on the  refinery operations  and product
characteristics.  Most of  the  shale  oil is expected to be refined into
middle distillates  (jet  and diesel  fuel)  and  gasoline  with  associated
production of some  residuals.  The middle  distillate from shale  oil would
account  for a significant  fraction  of  such distillates used in EPA Region
VIII.  Based on the data presented  previously on the environmentally
significant characteristics of shale  oil  products  and  the anticipated
refining and use pattern depicted in  Figure  17  and Table 52,  major areas of
environmental concern  in Region  VIII  would relate  to:   (a)  occupational
hazards  in processing, transporting,  and  sale of shale oil  middle
distillate, gasoline, and  residuals  derived  from shale oil;  (b)  public
exposure caused by  air pollution generated from the combustion of middle
distillates, gasoline, and  residuals;  evaporative  emissions from product
storage  tanks; and  inhalation  hazard  to motorists  at gasoline  service
stations; and (c) environmental  hazards associated with accidental spills
(for example, rupture of pipelines  carrying  products)  and disposal of waste
from refineries, product storage tanks, spill clean-ups, and  pollution
control  systems used  in  conjunction  with  steam  and power generation plants.
The mitigation measures  applicable  to  the  control  of these  anticipated
hazards  were reviewed  in Section 5.3.

5.4.2  Low-/Medium-Btu Coal Gas  Products

     The estimated  quantities  and utilization pattern  for the
low-/medium-Btu gas products  are presented in Figure 19 for Scenario  II and
the 1980-1987 time  period.  Except  for different levels of  production,  the
products and the utilization  pattern  shown in Figure 19 also  apply to  the
other  scenarios and time frames.

     Low-/medium-Btu  coal  gas  is expected  to be produced  in EPA Regions IV,
VI, and  VIII.  Because  it  is  not economical  to  transport medium-Btu gas
over distances greater than 200  miles  (see Section 3.2.1),  it is
anticipated that the  products  will  be  used in these same  regions. Because
of its lower Btu content,  the  economics of transporting low-Btu gas are
even more unfavorable.   Thus,  it is  expected that  low-Btu gas will also be
used in  the region  where it  is produced.   Some  low-Btu plants will probably
be located at the same site as the  product user.

     The gasifiers  built in Regions  VI and VIII are expected  to use the
commercially available Lurgi  technology,  which  generates  relatively small
quantities of by-product tars, oils,  phenols, and  naphtha.  The gasifiers
built  in Region IV  are expected  to  use the Texaco  partial oxidation
technology, which  is  compatible  with Eastern caking coals and does not
generate the by-product  tars,  oils,  and phenols.


                                      154

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                          TABLE 52.   QUANTITY OF  VARIOUS  SHALE OIL  PRODUCTS  IN  RELATION  TO
                                       PETROLEUM ANALOGS IN  THE  EPA  REGION  OF MAXIMUM SHALE
                                       OIL  PRODUCT  USE  AND  ON A  NATIONAL  BASIS FOR SCENARIO II
                                                    1980 - 1987               1988 - 1992 and 1993 - 2000

                                                     % of total                                % of total
                                      Total amount    product in     % of total    Total amount    product in     % of total
                                       of product     region of     product in     of product     region of     product in
                      Product            MM B/D       max use        U.S.           used        max use        U.S.
                Crude shale oil (fuel)        0.0008           1.3         0.45
01              Shale oil refinery feed       0.07            13.3         0.45          0.41          35.6         2.4
en
                Middle distillate            0.057          37.6         0.75           0.32          48.3         7.0
                Gasoline                  0.013           4.8         0.2            0.07           2.3         0.9
                Residuals                 0.007           15.6         0.2            0.04           6.6          1.3

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     As discussed  in  Section  3.2.1,  transportation of low-/medium-Btu gas
would require a dedicated  pipeline.   Once  delivered,  it  is  suitable for use
as either boiler fuel  or  as  a chemical  feedstock,  for example, in the
production of ammonia  or methanol.   Large  chemical,  petroleum, or steel
plants may require  enough  fuel  at  a  single plant  to  economically justify
the dedication of  an  entire  gasification  plant.   Another possibility is the
development of industrial  parks  centered  around  a  gasification facility.
The extent to which medium-Btu  gas will  be used  as chemical  feedstock
rather than boiler  fuel will  be  determined largely by economic
considerations, and one factor  could be  the extent to which  additional
emissions control  equipment  will  be  required for  boilers using
low-/medium-Btu gas.

     The use of the Lurgi  gasifier  by-products is  also uncertain.  Because
of their high heating  value  and  because  the toxic  hazards posed by their
distribution in commerce  are  not known,  it is anticipated that these
products will initially be used  at  the  production  site as boiler fuel.
Eventually, markets for these substances  may be  developed,  most probably as
chemical feedstocks.   The  quantities of  Lurgi by-products generated are
highly coal-specific  and  thus are shown  as a range in the diagram.

     Based on the  data presented previously on the environmentally
significant characteristics  of low-medium-Btu gas  products,  the areas of
concern in EPA Regions VIII,  VI, and IV  would primarily  relate to:  (a)
occupational health and safety hazards  in  processing, transporting, and use
of products; (b) public exposure to  air  pollutants generated during
combustion of gas  and  by-products;  and  (c) environmental hazards resulting
from accidental spills (for  example, rupture of  pipelines),  and disposal of
waste from production  facilities, product  storage tanks, spill clean-ups,
and systems used for  pollution  control.
                                      156

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                                 SECTION 6

        PRIORITY  RANKING OF SYNFUEL PRODUCTS FROM THE STANDPOINT  OF
                           ENVIRONMENTAL CONCERNS
     As  was  noted  in  Section 1, the primary objective of the  synfuel
utilization  study  was to identify and examine the major environmental
concerns  relating  to  synfuels utilization and to rank the  synfuel  products
(or groups  of  such products) from the standpoint of environmental  concerns
and mitigation  requirements.  The study is to provide input to  the EPA
effort  for:   (a)  assessing the environmental implications  of  a  mature
synfuel s  industry  and of large-scale utilization of synfuels  products, and
(b) planning and  prioritizing regulatory and research and  development
programs.   The  anticipated industry development, product utilization
patterns,  and  environmental  concerns associated with synfuel  products  were
presented  in previous sections.  The objective of this section  is  to  rank
the synfuel  products  from the standpoint of environmental  concerns and to
identify  those  products and  areas of concern that should receive more
immediate  and  greater regulatory and R&D attention.  The ranking  is based
on the  data  presented previously and therefore is subject  to  the
limitations  of  the existing  data and the assumptions used  in  developing
products  and use  scenarios and in estimating product characteristics  (see
Section  7  for  major limitations of the data base); the product  rankings
will  most  likely  change as more data become available, especially  for  those
products  for which little or no characterization data are  available at this
time.    It  should  also be noted that the specific approach used here  for
product  ranking represents only one of the many approaches that could  be
used to  rank synfuel  products from the standpoint of environmental
concerns.

     Section 6.1  presents the general basis used for product  rankings.  The
product  ranking is in part based upon an assessment of the environmentally
significant  characteristics  of synfuel products relative to petroleum
analogs;  the basis for this  assessment is explained in Section  6.2.  The
rankings of  the synfuel products are presented in Section  6.3.

6.1   BASIS  FOR PRODUCT RANKING

     The ranking  of synfuel  products, which is presented  in Section 6.3,
was based  on the  following factors and considerations:
                                     157

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     •    Reported  or  estimated  environmentally significant  characteristics
          of synfuel products  relative  to  those of  petroleum analogs,  based
          on considerations  of exposure potential,  combustive and
          evaporative  emissions,  toxic  hazards, cost  of  control,  and  the
          extent  of regulatory protections under key  existing environmental
          legislations;  products  for  which the  environmental  risks  and
          control  needs  are  greater and for which less  protections  can be
          anticipated  under  existing  regulations have been  given  a  higher
          ranking  (see Section 6.2 for  an  illustration  of the environmental
          attribute rating  procedure)

     •    The  estimated  quantity  of products used,  both  in  absolute terms
          and  as  percentages of  the total  (synfuel  and  petroleum)  used
          nationwide (Tables 53 through 55) and on  a  regional basis;  the
          greater  the  amount of  the product used and  the percentage of
          usage,  the greater the  potential for  presenting environmental
          hazards,  and hence a higher positive  ranking.

     t    Considerable scientific and engineering judgement; because  of the
          lack  of  a solid data base,  heavy reliance had  to  be placed  on the
          professional judgement  of experts most familiar with the  domestic
          energy  supply  and  demand picture, synfuel  production/refining
          technologies,  expected  environmental  characteristics of synfuel
          products, applicable controls,  and regulatory  needs.


     Two approaches were examined for ranking synfuel products:   (1)
ranking based  on  strict  adherence to  the  limited product characterization
data currently available (Table  47);  and  (2) ranking  based  on the premise
that in the absence of detailed  characterization data,  and  unless the
available data  indicate  otherwise, it would be  reasonable to assume that a
synfuel product would  be more  hazardous.    For  the  following reasons,  the
first approach  was  selected  and  used  to develop product  rankings.

     The second approach operates on  the  premise that if there is any room
for error in ranking synfuel  products,  it  would be  more  advisable to  err on
the safe side.  This scenario  asserts that, in  the  absence  of detailed
characterization  data  and strong  evidence  to the contrary,  synfuel  products
by their very  nature (new chemicals from  a more "exotic" source)
should be considered more hazardous.   Under this scenario nearly  all
synfuel products would be given  a positive ranking  and  the  ranking  system
would lose its  usefulness as a guide  in prioritizing  regulatory and R&D
activities.  Acquiring detailed  characterization data and not necessarily
concentrating  on  products that have been  established  to  present greater
environmental  concern  would  be emphasized  under the second  scenario.

     Under the  first approach, a  synfuel  product would  not  necessarily be
considered more hazardous because of  the mere lack  of detailed
characterization data.    Instead, assigning a more  positive ranking to a
product is supported by  actual  data or  based on strong  indications  of
greater potential  hazards.   Under the first scenario, prioritization  of
                                      X 3O

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                 TABLE 53,   ESTIMATED QUANTITIES OF SYNFUEL PRODUCTS USED IN THE U.S.: 1980-87
Product
Crude sh,ile oil (fuel )
Sn-ile 01 1 refinery feed
Shale jet fuel
S.rI LrG
EDS fuel oil
EOS ryohtha
EDS LPG
H-coal fuel oil
M-coal naphtha
H-coal LPG
National tioa i
(medium)
Tutd 1 Amount
uf Synthetic
Product
MMSPD
0.02
0.20
0.04
0. 12
0.02
0.036
0.15
0.24
r, of total
Product in
U.S.
0.13
1.2
3.4
3.4
0.6
0.57
1.5
2.3
(;.0! 6.13

0.02
0.003
0.012
0.12
0.002
0.03
0
0.005
0.08
0
0
0
0
n
n
0
0
0
0.2
0.03
0.12
0.12
0.06
0.4
0
0.10
0.7
0
0
0
0
n
n
0
0
0
Nominal
(Low)
Totaf Amount '/. of total
of Synthetic Product in
Product U.S.
0 . 0008
0.07
0.015
0.042
O.OO/
0.13
0.09
0.04?
0
0.05
0.45
1.2
1 .2
0.2
0.2
0.9
0.4
0

0
0
0
0
0
0
0
0
0
0
0
0
0
n
n
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
n
n
0
0
0
Accelerated
(High)
Amount 'K iTFTT. §".
MMBPD
0.03
0.34
0.06
0. 18
O.OJ
O.Ob
0.15
0.2
2.0
5.4
5.4
o.y
0.8
1.5
0.24 Z.J
0.001
0.2

0.02
0.3
0.004

0.1
0.002
0.04
0
0.007
o.oa
0
0
0
0
1.0
0.06
0.6
0
0.15
0.7
0
0
0
0
n n
n
0
0
0
n
n
n
0
en

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                TABLE  54.   ESTIMATED QUANTITY OF SYNFUEL PRODUCTS USED IN THE U.S.: 1988-1992
Product
Crude shale oil (fuel )
Shale oil refinery feed
Shale jet fuel
Sndle diesel fuel
Shale residuals
Shale gasoline
"odium Btu gas (coal )
S'.G (coal)
Gas if ier tar;, c'.li

Gasi i ier ;)iienol
F-T LPG
F-T medium Btu gas
F-I s:;c
F-T heavy fuel oil
F-l c-Tsoline
!1-aasoline
F-f diesel fuel
Fuel n:ethanol
SRC II fuel oil
SRC II naphtha
SRC 11 LI'G
EDS fuel oil
EDS r.aphtha
EDS LPG
H-coal fuel oil
r.-coal naphtha
H-coal LPG
National Goal
(Medium)
'•/
/.:
Amount
0
0.11
n.oK
0.22
0.0/1
0.07
0.48
0.74
0.01
of total
in U.S.
0
2.4
6.5
6.5
1.3
0.9
5.0
7.7
0.1

0.02
0
0.012
0.07
0.001
0.03
0.1
0.01
0.24
0.09
O.Ob
0.02
0.06
0.03
0.01
0.06
0.03
0.01
0.2
0
0.12
0.7
0.03
11.1
1.3
0.03
3.1
1.3
0.8
1 .6
1.0
1.0
0.9
0.4
0.2
Nominal
(Low)
Amount
0
0.41
0.09
0.23
0.04
0.07
0.27
0.17
0.01
X of total
in U.S.
0
2.4
6.5
6.5
1.3
0.9
2. P.
1.8
0.1

0.01
0
0.01
0.03
0.001
0.02
0.05
0.002
0.14
0.03
0.02
0.006
0
0
0
0
0
0.1 0
0.1
0
0.06
0.33
0.02
0.2
0.66
0.04
1.8
0.3
0.2
0.4
0
0
0
0
0
0
Accelerated
(High)
Amount
0
0.75
0.16
0.41
0.04
0.13
0.48
0.74
0.01
% of total
in U.S.
0
4.4
12.0
12.0
1.9
1.7
5.0
7.7
0.1

0.02
0
0.01
0.07
0.001
0.03
0.10
0.01
0.24
0.09
0.04
0.02
0.06
0.03
0.01
0.06
0.03
0.01
0.2
0
0.12
0.7
0.03
0.4
1.32
0.1
3.1
1.3
0.8
1.8
1.6
0.6
0.9
0.4
0.2
0.1
O

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TABLE 55.  ESTIMATED QUANTITIES OF SYNFUEL PRODUCTS USED IN THE U.S.:  1993-2000
Product
Crude shnle oil (fuel )
Shale oil refinery feed
Shole jet fuel
Shale dieoel fuel
Shale residuals
Shale gasoline
Medium I3tu gas (coal )
S:;G (coal)
Gasif icr tors, <.;i<,

Gasi Her phenol
F-T LPG
F-T ir.cdium Btu gas
F-T SI1G
F-T heavy fuel oil
F- F gasol ine
fi-gasol ine
F-T diesel fuel
Fuel niethanol
SPC II fuel oil
SKC 11 naphtha
SRC 11 LPG
EDS fuel oil
EDS naphtha
EOS LPG
H-coal fuel oil
H-coal naphtha
H-coal LPG
National Goal
(Modi urn)
Amount
(MMBPD)
0
0.13
0.09
0.23
0.04
0.07
0.29
0.50
0.01

0.02
0.003
U.UI
0
0.001
0.03
O.o
0.0005
0.23
0.09
0.05
0.02
0.06
0.03
0.01
0.03
0.03
0.01
i of
U.S.
0
2.1
6.8
6.8
1.3
0.9
3.0
5.2
0.1

U.2
0.03
0. 1
0
0.03
0.4
1.3
0.1
3.0
1.3
0.8
1.6
1.0
0.6
0.9
0.2
0.2
0.1
Nominal
(Low)
Amount
(MMBPD)
0
0.43
0.09
0.23
0.04
0
0.45
0.25
0.01
"L of
U.S.
0
2.4
6.8
6.8
1.3
0
4.7
2.6
0.1

0.0^
0
0.01
O.O/
o.om
0.03
0.1
0.01
0.23
0.09
0.05
0.02
0.06
0.03
0.01
0.06
0.03
0.01
0.2
0
O.I
0.7
0.03
0.4
1.3
0.1
3.0
1.3
0.8
1.6
1.0
0.6
0.9
0.4
0.2
0.1
Accelerated
(High)
Amount
(MMBPD)
0
0.75
0.15 1
',„ of
U.S.
0
4.4
2.0
0.41 12.0
0.04
0.13
0.48
0.74
0.01
1.9
1.7
5.0
7.7
0.1

' 0.02
0
0.48
0.07
o.om
o.m
0.1
0.03
0.?4
0.09
0.04
0.02
0.06
0.03
0.01
0.06
0.03
0.01
0.2
0
5.0
0.7
nm
04
1.3
0.4
3.1
1.3
0-8
1 .8
1.0
0.6
0.5
0.4
0.2
0.1

-------
regulatory and R&D activities  does  not  have  to  await  collection  of
additional data, which should  proceed concurrently  as a  separate activity.

6.2  Attribute Rating Procedure

     Table 56 presents the  assessment of  the environmental  concerns  for
various synfuel products  relative to their petroleum  analogs  on  a
"barrel-per-barrel"  basis.   As indicated  by  the headings in the  table, the
relative  ranking considers  potential for  exposure,  emission,  and toxic
hazard, and  the cost of  control  and the adequacy of existing  regulations.
A (+) ranking is assigned to a product  for an environmental attribute  if
the product  is judged to  present greater  environmental  concern  than  the
petroleum analog; a  ranking  of (0)  indicates that the environmental
concern would be similar  to  or less than  that of the  petroleum
product.  Factors considered in assigning ratings to  each product
for each  environmental attribute along  with  some examples of  product
ratings are  presented below.

6.2.1   Exposure

        Transport and Storage

     This criteria considers the potential for environmental  contamination
and public exposure  resulting  from  releases  caused  by accidents, spills,
and fugitive emissions.   As  noted in Table 62, crude  shale oil  and  the
direct liquefaction  fuel  oils  have  been assigned a  (+)  rating.   These
products  have been shown  to contain higher amounts  of water-soluble
compounds than their petroleum counterparts  (References 46 and  47).   In  the
case of spills, this can  result in  a more rapid spread  of pollutants and
more extensive contamination of the water environment than would be
expected  from  petroleum  crude  spills of similar size.   Other  products
listed in the table  have  been  assigned  a  (0) rating because the very
limited currently available data do not indicate a  higher potential  for
exposure  associated  with  transportation and  storage,  spills,  and fugitive
emissions.

        End  Use

     This criteria considers the potential  for exposure associated  with  end
use (for  example, exposure  to  combustion  products or  occupational
exposure).   It  is expected  that synfuel products will  be used in the same
manner as petroleum  products.   There appears to be  no strong  reason  to
believe that exposure to  the synfuel  products would be any different than
exposure  to  the petroleum products. A  (0)  rating is  assigned to all
products  for this attribute category.
                                      162

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                     TABLE  56.   RELATIVE ASSESSMENT OF THE ENVIRONMENTAL HAZARDS ASSOCIATED WITH
                                SYNFUELS PRODUCTS  AND PETROLEUM ANALOGS

Product
Crude shale oil (fuel)
Shale oil refinery feed
Shale Jet fuel
Shale dlesel fuel
Shale residuals
Shale gasoline
Low-/Med1um-Btu gas (coal)
SNG icoal
Gaslfler tars and oils
Gaslfler phenol
F-T LPG
F-T medium Btu
F-T SNG
F-T heavy fuel
F-T gasoline
M-gasollne
F-T dlesel fuel
gas

011



Fuel methanol
SRC II fuel oil
SRC II naphtha
SRC II LPG
EDS fuel oil
EDS naphtha
EDS LPG





H-coal fuel oil
H-coal naphtha

H-coal LPG
EXPOSURE
Transport
&
Storage
+
+
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

+
0
0
+
0
0
+
0
0
End Use
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
EMISSION
FACTOR
Transport
&
Storage
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
End Use
+
0
+
+
+
+
+
0
+
+
0
0
0
0
0
0
0
+
+
0
0
+
0
0
+
0
0
TOXIC
HAZARD
Transport
&
Storage
+
+
0
0
+
0
+
0
+
+
0
0
0
0
0
0
0
0
+
+
0
+
+
0
+
+
0
End Use
+
+
+
+
+
+
+
0
•f
+
0
0
0
0
0
0
0
0
+
+
0
+
+
0
+
+
0
COST OF
CONTROL

+
0
+
+
+
+
+
0
+
0
0
0
0
+
0
0
0
0
+
0
0
+
0
0
+
0
0
ADEQUACY OF
EXISTING REGULATIONS
CAA
+
0
+
+
+
+
+
0
+
0
0
0
0
0
0
0
0
+
+
0
0
+
0
0
+
0
0
CWA
+
+
0
0
+
0
0
0
+
0
0
0
0
0
0
0
0
0
+
+
0
+
+
0
+
+
0
RCRA
+
+
+
+
+
+
+
0
+
0
0
0
0
+
+
+
+
+
+
+
0
+
+
0
+
+
0
TSCA
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
CTt
CO

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6.2.2  Emission Factor

        Transportation  and Storage

     This environmental  attribute considers  the  amount  of  material  that
would be released to the  environment  as  a  result  of  transportation  and
storage activities, without  regard  to pollutant  mobility and  the  number  of
people potentially exposed {population density consideration).  The
potential sources of release  include  primarily fugitive emissions and
spills.  The limited data currently available on  the characteristics of
synfuel products do not indicate  higher  volatility  or greater potential  for
accidental spills (see  Section  D.4, Appendix D).  Accordingly,  all  synfuel
products have  been given  a  "0"  ranking  for this  environmental  attribute.

        End Use

     End use emisssions include combustion emissions and evaporative
emissions assoicated with end uses  (for  example,  use of gasoline  in cars).
As indicated in Table  56 synfuel  products  that have been judged to present
greater end use emissions than  petroleum analogs  are shale oil  products  and
direct liquefaction fuel  oils (because  of  higher NO  emissions-see Table
47); low-/medium-Btu gas  (because of  higher  emissions of trace  elements  and
heterocyclics); methanol  (because of  higher  aldehyde emissions),  and
gasifier by-products (if  used as  fuel).   Because  of their  similar
volatilities,  the use  of  shale  oil  as a  refinery feedstock is expected  to
result in quantities of fugiture  emissions similar  to those which would
result from the use of  crude  petroleum.   Thus, a (0) rating has been
assigned to the use of  shale  oil  as refinery feed.

6.2.3  Toxic Hazard

        Transport and  Storage

     The toxic  hazard  criteria  includes  both human  and ecological toxicity
considerations.  The ratings  shown  in Table 62 are  based on the results  of
the  various tests of biological activity discussed  in Section 4.3 where  no
actual test results were  available, on  the consideration of chemical
characteristics.  The  limited available  test results indicate that the
toxicity of refined shale products  is similar  to that of their petroleum
counterparts.   These products have  been  assigned a  (0) rating.    Because of
the  presence of known  toxic  contaminants at  levels  higher  than those  in  the
products they  will displace  in  the  market, low-/medium-Btu gas and gasifier
tars,  oils,  and phenols are assigned a  (+)  rating.   The available  test
results  indicate that  crude  shale oil,  shale residuals and direct
liquefaction  fuel  oils and naphthas are more toxic  than their  petroleum
counterparts.   As shown in Table  56,  these products have been assigned  a
(+)  rating.  Examination  of  the chemical composition of the LPG's, SNG,  and
indirect coal  liquids  reveals no  reason  to expect them to  be more
biologically active than  their  petroleum counterparts; these products  have
also been assigned a (0)  rating.

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       End Use

    Most synfuels are expected  to  be  used  primarily as fuels in combustion
systems.   Assessment of the known and  estimated  composition of many of the
combustion gases (see Tables 47  and 48,  respectively) indicates that the
combustion products from crude shale oil  and  shale oil  products, and from
low-/medium-Btu coal gas, gasifier  tars,  oils,  and phenols, and direct
liquefaction fuel  oils would be  more toxic  than  the combustion products
from their petroleum-derived counterparts.   When used as feedstocks, shale
oil and direct liquefaction naphthas are  expected  to pose greater toxic
hazards than petroleum crudes and naphthas.  Medium-Btu gases and gasifier
tars, oils, and phenols, if used as feedstocks  rather than as fuels, are
also expected to pose greater toxic hazards than currently used feedstocks.
Accordingly, all of these synfuels  have  been  assigned (+) ratings.  The
remaining products in Table 56,  which  would be  used primarily as fuels, are
not expected to produce more toxic  combustion gases than their
petroleum-derived counterparts.  Because  little  is known about the effects
of chronic exposure to low  levels of methanol  (levels below those which are
known  to produce acute symptoms) and  the health effects characteristics of
methanol  combustion products, it is very  difficult to assess the toxic
hazards associated with the use  of  methanol as  fuel relative to the use of
petroleum gasoline.  Combustion  of  methanol has  been shown to produce
higher amounts of aldehydes but  lesser quantities  of other potentially
hazardous substances such as PNA's; therefore,  the overall health effects
of methanol relative to petroleum gasoline  cannot  be judged based solely on
the available data  on compositon of combustion  products.  Because of these
uncertainties a ranking of  (0) has  been  assigned to methanol.

6.2.4  Cost of Control
    The cost-of-control  attribute has been rated primarily on the  basis  of
added control costs  for  regulated  pollutants wherever such pollutants  (NO
especially,  and occasionally particulate and SO ) are anticipated to  be
emitted at levels  exceeding  those  from the combustion of petroleum  products
for  synthetic fuel  use.   Much more information will be needed on combustion
pollutants and associated solid and liquid wastes (for example, particulate
collection,  storage tank aqueous sludges) to update these  ratings.   For
example, the  replacement cost frequency for automobile catalytic converters
could be significantly  increased if trace synthetic gasoline constituents
such as arsenic result  in rapid catalyst deactivation.  Based on these cost
considerations, a  rating of  (+) has been assigned to  shale oil products
(used as fuel), low-/medium-Btu gas, gasifier tars and oils, and direct
liquefaction  fuel  oils.

6.2.5  Adequacy of Existing  Regulations

    The rating under  this category is broken down under the grouping of
regulations  established  under the  authority of the major environmental
legislation  that  could  affect synfuel  product utilization  (see Section
5.3.2 for a  review of  key pertinent legislation).  A  (+) entry implies that
a greater amount  of regulatory protection will probably be needed  than is
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now available through existing  or  near-term  regulations,  relative  to
petroleum product or natural  gas use.   A  (0)  entry  implies  that  existing
regulations offer the same  protection  as  now achieved  with  petroleum
product.

        Clean Air Act (CAA)

     As noted in Section  5.3.2, most  of the  existing  and  planned air
quality protection  regulations  focus  on criteria  pollutants (that  is,  SO  ,
NO , CO and particulate matter) or on  classes/categories  of substances (for
example, volatile organic carbon).  Although very important in  air quality
protection, these criteria  do not  address specific  hazardous components of
pollutant categories  included in the  standards (for example, polycyclic
organic matter  in the particulates)  or other hazardous substances  that
might be emitted.   This  limitation of the existing  air pollution control
regulations applies  to  both synfuel  and petroleum products  end  uses,   ".
although to different degrees.  The relative severity of  this limitation
and therefore the greater need  for regulatory protection  has been  the  basis
for the ranking shown  in  Table  56-  As indicated  in the table,  a ( + )
ranking has been assigned to shale oil products (used as  fuel),
low-/medium-Btu gas,  gasifier tars and oils, fuel methanol, and direct
liquefaction  fuel oils.   These  products have been assigned  (+)  ratings
because of possible  emissions of  higher amounts of  toxic  substances
(hazardous trace elements associated  with the particulates  emitted in  the
combustion of shale  oil  products  and  low-/medium-Btu gas; emissions of
higher  amounts  of PNA's  with synfuels that are generally  richer in
aromatics).

        Clean Water Act  (CWA)

     The objective  of the Clean Water Act is to regulate  point  source
discharges  into navigable waters.   Effluent discharges from synfuel storage
and using  industries would be subjected to effluent guidelines  for point
source  industrial discharges.  Under the  provisions of the Act, effluent
controls using  the  best  available  technology economically achievable
(BATEA) would be  required for the  control of some 65 substances/classes of
substances,  commonly referred to   as priority or  "Consent  Decree"
pollutants.   EPA  is  to  promulgate  and apply BATEA standards for industrial
point  source  categories  by July 1, 1984.   The priority pollutants  include
some of the  hazardous  substances   (benzene, phenol,  arsenic, and
ethyl benzene) that  are  expected to be present in wastewaters from  plants
using  synfuel products,  as the result of direct product uses or accidental
spills.  Because  of the lack of data on the characteristics of the
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wastewaters  from  such plants* and on the capabilities and costs  of
applicable  control  technologies, it is very difficult to predict  the
adequacy  of  the yet-to-be promulgated BATEA standards for the  control  of
effluent  discharges  from synfuel storage/using industries.

     Because  of these uncertainties, the assessment of the  relative  degree
of regulatory  protection provided under the Clean Water Act  for  synfuel  vs.
petroleum products  storage/using facilities has been based  primarily on  the
consideration  of  the  known or expected differences in the characteristics
of synfuel  products  relative to their petroleum analogs.  It is  thus
assumed that  the  differences in product characteristics would  be  reflected
in differences in the wastewaters, which would in turn affect  the adequacy
of BATEA  in  providing equal  protection.  Based on these considerations,  the
following products  have been assigned a ( + ) ranking: crude  shale  oil  (fuel
and refinery  feedstock), shale residuals, gasifiers tars and oils and
direct  liquefaction  fuel oils and naphthas.

       Resource  Conservation and Recovery Act (RCRA)

     Utilization  of  synfuel  products would produce solid wastes  in the form
of sludges  from storage tanks and cleaned-up spill material  and,  in  some
cases,  solid  wastes  and sludges from air pollution control.  Although  these
wastes  are  not presently included in the list of  "specific"  hazardous  waste
developed by EPA  pursuant to RCRA, the wastes would most likely  be
designated  as  hazardous based on other RCRA criteria (for example,
containing  specific  chemicals listed as toxic materials   see  Section
5.3.2).   Effort to  develop hazardous waste management regulations pursuant
to RCRA is  still  in  progress and data on the characteristics of  synfuel
utilization  wastes  are currently unavailable; accordingly,  in  Table  56 the
indicated assessment  of the relative degree of regulatory protection
provided  under RCRA  for synfuel vs. petroleum products utilization wastes
primarily reflect judgment as to the relative hazards posed  by the two
waste categories, based on known or expected differences in  the
characteristics of  synfuel products relative to their petroleum  analogs.
As noted  in  Table 56, a (+)  ranking has been assigned to shale oil
products; gasifiers,  tars, oils and phenols; direct liquefaction  fuel  oils
and naphthas;  and low-/medium-Btu gas.  Hazardous solid wastes resulting
from air  pollution  control would result from the  use of low-/medium-Btu gas
as fuel.
  The characteristics of wastewater from a plant  using  synfuels  (for
example,  a  petroleum refinery that uses crude shale as  part  of  its
feedstock)  would be affected by several factors including  chemical
characteristics  of the specific synfuel product used, the  extent  of
blending/usage (for example, in the case of refinery handling  shale oil,
the  amount  of shale oil  as a percentage of total  refinery  feed),
refining/processing steps used,and in-plant water conservation  and waste
minimization/management  practices.


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        Toxic Substances  Control  Act (TSCA)

     As noted in  Section  5.3.2,  EPA's  approach to the regulation of synfuel
products under TSCA  is  still  being formulated.  Under the mandate of TSCA,
many of the synfuel  products  would fall  into the "new products", "new
uses", or  "products  produced  using different processes" categories and
would be subject  to  pre-manufacturing  notification provision of TSCA.   At
the present time, a  key point of uncertainty relates to whether for synfuel
products,  the assessment  of  "unreasonable risks", which is the basis for
product regulation  under  TSCA,  should  be in  "absolute" terms or in terms of
product properties  relative  to  those of existing and widely used petroleum
products.

     The assessment  of  the relative degree of regulatory protection that
would be provided by TSCA for synfuel  vs. petroleum products requires
resolution of the previously mentioned uncertainties.  Strict
interpretation of the TSCA mandate to  regulate substances that present
"unreasonable risks" to health  and the environment would suggest that
regulatory protection provided  under TSCA for synfuel products (as well as
petroleum  or other products  of  commerce) should be adequate.  Because of
this and the regulatory uncertainties, a ranking of (0) has been assigned
to all products  in  Table  56  in  connection with the adequacy of TSCA
regulations.

6.3  PRODUCTS RANKING

     Table 57 presents  the results of  synfuel products ranking.  The
products are ranked  into  three  groups:  those eliciting the most concern
(ranked as 1), those indicating modest concern (ranked as 2) and those
generating a low level  of concern at the present time (ranked as 3).  As
noted in the table,  in  the near term (1980-1987 period), synfuel products
of concern are primarily  the  shale oil products and medium-Btu gas and SNG
from coal  gasification.  Under  the nominal scenario, shale oil refinery
feed elicits the most regulatory attention,  other shale oil products and
medium-Btu gas elicit modest  concern,  and SNG requires low level of
attention.  Except  for  a  ranking of 1  for direct use of crude shale oil as
fuel under the national goal  and accelerated scenarios, the rankings remain
the same under the three  production scenarios during 1980-1987.

     For the 1988-1992  period,  when products from SRC II and F-T processes
will also  be marketed,  the products eliciting most concern would consist of
shale oil  refinery feed,  fuel methanol, SRC  II fuel oil, gasifier tars and
oils, and  medium-Btu gas  (under national goal and accelerated scenarios).
F-T products and LPG from SRC II are ranked  as low priority products during
1988-1992.   During  the 1993-2000 time frame, shale oil refinery feed,
medium-Btu gas (under nominal and accelerated scenarios), gasifier tars and
oil, and fuel oils  from the  three liquefaction processes are ranked as 1,
F-T products are assessed as  3, and all other products are given a 2
ranking.


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                               TABLE  57.   PRIORITY  RANKINGS  OF SYNTHETIC FUEL PRODUCTS
Product
Crude shale oil (fuel )
Shale oil refinery feed
Shale jet fuel
Shale diesel fuel
Shale residuals
Shale gasoline
Medium Btu gas (coal)
SNG (coal)
Gasifier tar
Gasifier oils
Gasifier phenol
F-T LPG
F-T medium Btu gas
F-T SNG
F-T heavy fuel oil
F-T gasoline
M-gasoline
F-T diesel fuel
Fuel methanol
SRC II fuel oil
SRC II naphtha
SRC II LPG
EDS fuel oil
EDS naphtha
EDS LPG
H-Coal fuel oil
H-Coal naphtha
H-Coal LPG
1980-1987
National
Goal
1
1
2
2
2
2
2
3
-
-
2
-
-
-
-
-
-
-
-
_
-
-
_
-
-
_
-
—
Nominal
2
1
2
2
2
2
2
3
-
-
2
-
-
-
-
-
-
-
-
_
-
-
_
-
-
_
-
•~
Accelerated
1
1
2
2
2
2
2
3
-
-
2
-
-
-
-
-
-
-
-
_
-
-
_
-
-
_
-
~
1988-1992
National
Goal

1
2
2
2
2
1
-
1
-
2
-
3
3
3
3
3
3
1
1
2
3
_
-
-
_
-
~
Nominal

1
2
2
2
2
2
-
1
-
2
-
3
3
3
3
3
3
1
1
2
3
_
-
-
_
-
—
Accelerated

1
2
2
2
2
1
-
1
-
2
-
3
3
3
3
3
3
1
1
2
3
_
-
-
_
-
—
1993-2000
National
Goal

1
2
2
2
2
2
-
1
_
2
_
3
3
3
3
3
3
1
1
2
2
1
2
3
1
2
3
Nominal

1
2
2
2
2
1
3
1
_
2
_
3
3
3
3
3
3
1
1
2
2
1
2
3
1
2
3
Accelerated

1
2
2
2
2
1
-
1
_
2
_
3
3
3
3
3
3
1
1
2
2
1
2
3
1
2
3
CT)
           — Indicates product is not produced under the scenario shown
           Degree of Concern:  riost = 1,  Modest = 2, Low = 3

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     The rankings presented  in  this  section generally indicate the greatest
level of environmental concern  and  regulatory requirements for shale oil
refinery feed and coal liquids.   As  discussed in Section 5, these liquids
have been demonstrated to  be more hazardous than petroleum crude and fuel
oils (a major factor  in  assigning a  1 ranking).  This, and the fact that
shale oil products will  be the  first synfuels that are expected to enter
the market on a  large scale  are the  major factors that signify near-term
environmental concerns for shale oil products in general and shale oil fuel
and  refinery feed in  particular.
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                                 SECTION 7

              DATA GAPS AND  LIMITATIONS AND RELATED PROGRAMS
    As noted  previously,  a  number of major gaps in the existing data base
preclude accurate analysis of  the  potential  environmental  concerns
associated with a future  large scale commercial  synfuel industry in the
U.S. and of applicable  controls  and mitigation measures.  These data gaps
and  limitations relate  to  (a)  present uncertainties regarding the size of
the  industry,  specific  synfuel  technologies that will  be used, locations of
production facilities and  product  distribution systems, and the specific
areas of synfuel use; and  (b)  lack of adequate characterization data on
synfuel products and  on the  analogous petroleum products that they will
partially or totally  replace.   The first category affects the regional
environmental  implications and synfuel  production scenarios and market
analyses developed  in Sections 2 and 3  of this report, whereas the second
category introduces uncertainties  in the estimated characteristics of
synfuels products (Section 4)  and  the analysis of environmental concerns
(Section 5).   Both  types  of  data limitations impact the regional
environmental  implications and the priority ranking of the synfuel
products.

    This section examines the major factors responsible for data gaps and
limitations, summarizes the  data gaps and limitations, and lists some of
the  on going and planned  programs  that  are expected to generate some of the
needed data for a more  refined analysis of the environmental implications
of large-scale utilization of  synfuel products.

7.1  MAJOR FACTORS  RESPONSIBLE FOR DATA GAPS AND LIMITATIONS

    The limitations  of the  available data stem from a large number of
factors, most  important of which are the following:


    •    The  present uncertainties surrounding the U.S. energy policy and
         changing  domestic  and  international political conditions that
         impact oil  and  natural gas supplies and prices.

         These uncertainties  make it extremely difficult if not impossible
         to develop  reasonably accurate forecasts of the extent of the
         contribution  of synfuels to the near-term energy picture in the
         U.S.
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Synfuel production processes  are  still  evolving and  will  be
continuously modified  and  refined before optimum technologies anc
specific designs and equipment  are selected for use  in
large-scale commercial  facilities.   In  the U.S., synfuel  pilot
plants and experimental  units that have been operated or  are
currently in operation  have  been  designed and operated primarily
to develop design criteria and  process  optimization  with  little
emphasis on product characterization from an environmental
standpoint or on definition  of  optimum  conditions for production
of environmentally acceptable products.   Thus, the
characteristics of the  products from pilot-plant operations may
not accurately reflect  those  of products that would  be produced
in large-scale installations.

Some synfuel processes  have  been  used commercially abroad;  these
commercial facilities  do not  generally  incorporate the design a^:
operating features that would likely be used in U.S.  facilities
to minimize pollutant  generation  and improve the environmental
acceptability of products.  Moreover, the coals used at these
facilities differ from those  that will  be used at commercial
synfuel plants in the  U.S.  Because of  these reasons, the
available product characterization data frou commercial
installations abroad may not  adequately reflect the anticipated
characteristics of products  from  consiercial plants in the U.S.

Most of the process test and  evaluation and product
characterization efforts to  date  have been in connection  with the
production of prisary  synfuels  (that is, shale oil,
low-/Bediuet-Btu gas, SNG,  and coal liquids); very little  effort
has been expended to evaluate the refining of synfuels and  the
subsequent production  and  characterization of secondary products
[synfuel-derived naphtha,  gasoline, solvents, etc.).

Although oany of the environmental pollution controls and
aitigation measures that would  be used  in connection with
production, distribution,  and use of synfuel products have been
used successfully in other industries and in connection with
petrol sura based products,  they  have not been evaluated
specifically on synfuel products  and their effectiveness  in sycfc
applications renains to be evaluated.

A significant portion  of the synfuel process developaent  efforts
and the testing of the synfuel  products is being carried  out by
private industry.  Much of the  data that Hay exist for these
processes and the characteristics of their products is considers
proprietary and is not  publicly available.

For those synfuel processes  for utiidh soese product
characterization data  are  available, such data are not
comprehensive in that  not  all products  and characteristics of
environoental interest are addressed.

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    •    Even though there  has  been  a long standing Interest in the
         extraction of oil  from oil  shale and the conversion of shale oil
         and coal to liquids  and gaseous  fuels, and although a number of
         synfuel facilities have been in  operation for some time in other
         countries, it is only  very  recently that there has been a very
         strong interest in assessing the environmental  aspects of
         synfuel technologies.   The  present study appears to constitute a
         first attempt to focus attention on the potentially broad
         environmental implications  of large-scale marketing and
         utilization of synfuel  products.


    •    Because of the large-scale  and widespread use of petroleum
         products, these products  have generally come to be viewed by the
         public as environmentally innocuous.  Accordingly, the
         specifications for petroleum products have primarily emphasized
         performance with little attention to environmental
         considerations.  Very  little data are available on potential
         pollutants and toxicological and ecological  properties of many of
         the petroleum products to provide a baseline for assessing the
         relative safety of synfuel  products.

7.2   SPECIFIC DATA GAPS AM) LIMITATIONS

    In general, the data gaps and  limitations fall into two categories:
(1)  relevant data that are totally  nonexistent or unavailable and (2) data
that are available but lack  comprehensiveness, or have been obtained under
conditions significantly different  than those anticipated in large-scale
production operations and product marketing and distribution systems in the
United States.  Examples in  the  first category are the lack of data on the
concentration of coal-derived  impurities in synfuel products (for example,
LPG  and solvents and the cheaical feedstocks that will be used in industry
and  coBoerce), on the characteristics of sludges from synfuel products
storage facilities, and on the effectiveness and service life of
conventional control technologies and mitigation measures (for example,
catalytic converters in autoaobiles)  in synfuel service.  These data gaps
result froa the fact that many of the synfuel products have not yet been
produced on a coraiercial scale and large-scale distribution, service
networks, and use patterns have  not yet been established for thea.  Even
though certain product characteristics can be estimated through engineering
studies based on process engineering  considerations and the knowledge of
the  input materials, such studies have not been conducted for the aajority
of synfuels products, especially those produced further "downstreao".  For
sane products for which  saee data night exist (for exaople, EDS direct
liquefaction process), such  data are  not publicly available because they
are  proprietary.

    Exaaples of the second  category  of data gaps are the lack of trace
elenent and toxicological and  ecological information for many of the
synfuels products, their petroleum analogs, and emissions froa their
combustions.  Where  sane data  are available, such data do not cover

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detailed composition  and  types  and  levels  of trace elements  and
coal-derived impurities,  long-term  bioassay  and  health  effects  information,
biodegradability and  potential  for  environmental  persistence.

     Because large-scale  synfuel  production  facilities  do  not currently
exist, the first category of  data  gaps  can only  be partially filled,  for
example, through engineering  studies,  at  the present  time.   Many  of the
gaps in the  second  category,  however,  can  and should  be filled  through
multimedia environmental  sampling  and  analysis of the products  and
process/discharge streams at  pilot  plants  and commercial  foreign  synfuels
facilities and through  product  testing  and evaluation programs  (for
example, combustion  testing  of  fuels).   Even though pilot  plants  and  test
and evaluation units  may  not  be scalable  to  or  representative of  commercial
facilities and applications,  sampling  at  pilot  plants and  test  and
evaluation studies  represent  the best  and  the only means  of  acquiring
meaningful data  on  product characteristics and  on the effectiveness of
various controls.   Such sampling and analysis,  coupled  with  product testing
and evaluation,  can  provide  valuable and  timely  inputs  to  the evolution of
the synfuel  industry and would ensure that;  (1) environmental  considerations
are included in  the  selection of processes,  equipment,  and waste  .management
options for  commercial  facilities,  and  (2) the  drafting of specifications
for synfuel  products, new source performance standards  for synfuel plant
and emission standards  for facilities  using  synfuel  products are  based on
the best available  technical  and engineering data.  Several  currently
underway or  planned  programs  involve sampling at pilot  plants,  bench-scale
units, or  foreign commercial  synfuel facilities; environmental
characterization of  synfuel  products;  and  testing and evaluation  of certain
uses of synfuel  products.  The  more important of these  and related
engineering  studies  are summarized  in  Section 7.3.

7.3  RELATED PROGRAMS

     Major programs  that  are  expected  to  generate some  of  the data needed
for environmental assessment  of synfuel  product  utilization  fall  into
several categories,  including EPA-sponsored  programs, DDE-sponsored
programs,  programs  carried out  by other agencies such as  the Department of
the Navy and the Tennessee Valley Authority, programs carried out by
developers and product  users, and programs carried out  in  connection  with
commercial synfuel  projects.   The Fossil  Fuels  Research Materials (FFRM)
facility was recently established between  the U.S. EPA  and DOE  to provide
support for  health  and  environmental effects studies  for  the generation of
some of the  data needed for  environmental  assessment  of synfuel
technologies.  The  data collected by process developers and  major potential
users of synfuels are considered company  proprietary  and  are not  made
public.  In  connection  with  the requirements for the  preparation  of
environmental impact  assessments,  the  sponsors  of major commercial synfuel
projects collect certain  product characterization data  and analyze
environmental concerns  and alternative mitigation measures on  regional and
local levels.  Major  commercial coal liquefaction and gasification projects
and cooperative  agreements and  feasibility study grants for synfuels  are
listed in  Appendices  B  and C, respectively.   The most relevant  of the

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government funded  programs,  especially those most directly related to  the
characterization of  synfuel  products  from the standpoints of environmental
health effects and combustion  emissions, are reviewed briefly in the
following paragraphs.

7.3.1   Environmental  and Health  Effects Programs

    Tables 58 and 59  summarize the  chemical  and biological/ecological
tests currently being  conducted by EPA and DOE laboratories and by other
government and private  agencies,  such as the U.S. Navy, the American
Petroleum Institute, and several  universities, on various samples of shale
oil and coal liquefaction products.   As indicated in the tables, the
products are undergoing a fairly  comprehensive chemical analyses as well as
a  battery of bioassays  including  small  animal carcinogenicity,
tumorigenicity, acute  oral toxicity,  and bacterial  mutagenicity.  Results
of the testing are just beginning to  be obtained and have not yet been
released.

    In addition to  the studies shown in Tables 53 and 59 large-scale
toxicological and  combustion  studies  are also being conducted independently
by the U.S. Navy on  oil shale  products.  The products being studied include
DFM (acid pretreat), final JP-4,  JP-5,  JP-8 products, and final DFM
product.  Tests being  conducted include acute oral  toxicity, acute
inhalation toxicity, acute dermal  toxicity, skin and eye irritation
studies, skin sensitization  studies,  subacute dermal toxicity, chronic
inhalation toxicity, and behavioral  toxicity.

    Biomedical screening studies of  SRC II syncrude and petroleum
materials are also being conducted by DuPont.  To date, Ames mutagenicity
testing and mouse  skin  paintings  have been conducted on SRC II fuel oil
blends of 2.9:1 middle-to-heavy distillate.  Results of these tests have
not yet been made  public.

    Most of the current chemical and biological/ecological testing of coal
gases involve low-/medium-Btu  gasification products rather than SNG.   The
Morgantown Energy  Research Center and the Lovelace  Inhalation Toxicology
Research Institute are currently  conducting toxicological evaluations  of
effluents and process  streams from low-Btu gasifiers.  Results of these
studies have not yet been released.

    Studies pertaining to high-Btu gasification are being carried out by
DOE and EPA.  DOE  has  recently undertaken a program for the biological  and
toxicological characterization of process and product  streams from the
Hyqas and other SNG  pilot plants.  Results are not  available from the
program, which  is  being conducted at  Argonne National  Laboratory and
several other DOE  laboratories.

7.3.2  Combustion  Characteristics

    The performance of middle and heavy distillates,  fuel oil  blends, and
3:1 middle-to-heavy  distillates  from the SRC II  pilot  plant is currently

                                     175

-------
                TABLE  58.   CHEMICAL,  BIOLOGICAL AND  ECOLOGICAL  TESTING OF  PARAHO/SOHIO CRUDE
                               AND  REFINED SHALE OIL  SUITE
01









RESEARCH
MATERIAL
Crude Shale Oil
HOT Shale Oil
Weathered Gas
Feedstock
JP-5 Precursor
JP-8 Precursor
DFM Precursor
HOT Residue
JP-5 Product
JP-8 Product
DFM Product
Acid Sludge
Petroleum JP-5
Petroleum JP-8
Petroleum DFM
Chemistry



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        Key to Investigators
1.   L.  W. Burdett, Union Oil  Co.
     (API Sponsored)
2.   S.  C. Blum, Exxon  (API Sponsored)
3,   W.  Berkley, Kettering Laboratory
4.   J.  H. Holland, ORNL
5.   L. M. Holland, LASL
6.   o. L. Epler, ORNL
7.   F. T. Hatch, LLL
8.   S. Zimmering, Brown University
9.   M. Legatur, University of Texas
10.   H. P. l/itschi, ORNL
11.   J. H. Giddings, ORNL
12.   D. L. Coffin,  EPA
13.   J. H. Dumont/T.W. Schultz, ORNL
14.   N. Richards, EPA
15.   «. H. Griest,  ORNL
16.   B. R. Clark, ORNL
17.   L. Smith, ORNL
18.   M. Pepelco, EPA

-------
TABLE 59.  HEALTH EFFECTS TESTING FOR DIRECT COAL LIQUIDS(45)
Coal Liquids

eratogenesis
ral Toxicity-Rat
ral Toxi city-Mouse
1— O O
SRC II Fuel Oil Blend 1 - 2

SRC II Heavy Distillate 10 10
SRC II Middle Distillate 10 10 11
SRC II Light Distillate 10 10


EDS Coal Liquids ...
H-Coal Liquids 1
SRC I 1 - -
Key to Investigators
1 N. Klein, University of Connecticut
2. H.P Witschi, ORNL
3 S Zimmering, Brown University
4. M Legatur, University of Texas
5. J. M. Giddings, ORNL
6. N Richards. U.S. EPA
7. J.M. Holland, ORNL
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8 J. L. Epler, ORNL
9. A.P Pfuderer, ORNL
10. Battelle Memorial Institute, Richard
11. Eartlesville Energy Technology Center
12. W.H. Calkins, du Pont
13. J.N. DuMont, J.W. Schultz, ORNL
14. R. Milliman, ORNL

-------
being studied by the Pittsburg Energy  Technology  Center.   Results  of this
study have not yet been made available.

     No studies are currently  underway for  the  characterization  of
combustion products of indirect  coal liquids.   However,  it  1s  likely that
performance characteristics of Mobil-M and  Sasol  products  are  continuing to
be studied by their respective developers.

     TVA, in conjunction  with  EPRI,  Radian, and TRW,  is  currently
sponsoring a program for  the environmental  assessment  of waste streams
associated with low-/medium-Btu  gasification.   Although  the objectives  of
the TVA program do not include product or  product combustion
characterization per se,  EPA is  expected  to participate  in  the program  at a
future data in order that bioassays  of waste stream and  possibly
products/by-products be  performed.   To date, the  TVA  program has included
sampling  and analysis  activities at  the Ruhr-Chemie gasification facility
in Germany involving a Texaco  gasifier and  the  testing of  an Illinois  basin
coal.  Testing of  another Illinois  coal  at  a Kopper-Totzek  facility in
Greece is planned  for  late February.
                                      178

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                            REFERENCES

 1.    Lee,  B.S., Synthetic Fuels and the Total Cost of Oil Import,
      presented at Seventh Annual  International Conference on Coal
      Gasification, Liquefaction & Conversion to Electricity, August
      1980.

 2.    Bechtel  National  Inc., Production of Synthetic Liquids from Coal,
      1980-2000: A Preliminary Study of Potential  Impediments, Final
      Report,  San Francisco, California, December  1979.

 3.    Mechanical Technologies, Inc.. An Assessment of Commercial Coal
      Liquefaction Process Equipment Performance and Supply, Lathan,
      New  York, January 1980.

 4.    Monsanto Research Corporation, Synthetic Transportation Fuels
      from  Coal, Mound  Facility, Miamisburg, Ohio, November 1979.

 5.    UOP/SDC, Feasibility Assessment: Production  of Synthetic Fuels
      from  Direct and Indirect Liquefaction Processes.  McLean, Va.
      January  1980.

 6.    Cameron  Engineers,  Oil Shale Seminar Proceedings, September 2627,
      1977.

 7.    Chevron  Research  Co.,  Refining and Upgrading of Synfuels from
      Coal  and Oil Shale by  Advanced Catalytic Processes, July 1978.

 8.    The  Pace Company  Consultants and Engineers,  Cameron Synthetic
      Fuels Report, June 1980.

 9.    Cameron  Engineers, Inc., Synthetic Fuels Data Handbook, 1978.

10.    J.  Potts, K. Hastings, and R. Chil1ingworth, Expanded Bed
      Hydroprocessing of Solvent Refined Coal  (SRC) Extract, Cities
      Service  Company,  U.S.  Department of  Energy,  FE-2038-34.

11.    Picture  Tour of Sasol-II Coal Liquefaction Plant, Chemical
      Engineering Progress,  pp 85-88, March  1980.

12.    D.  J.  Deutch, A Big Boost  for Gasoline  from  Methanol, Chemical
      Engineering  , pp  43-45,  April 7, 1980.

13.    U.S.  Department of Energy, Achieving a  Production Goal of  1
      Million  B/D of Coal Liquids  by  1990,  DOE-FE-10490-01.
                                 179

-------
14.   K.A. Rogers and R.F. Hill, Coal Conversion Comparisons,
      Engineering Societies Commission on Energy, Inc., FE-2468-51.

15.   TRW Energy Engineering Division, Demonstration Plant Common
      Critical Problems, Phase I Report, Contract No.  EF-77-C-01-2623.

16.   Pittsburgh Energy Technology Center, Institutional Plan,
      FY1980-FY1985, November 30, 1979.

17.   Encyclopedia of Chemical Processing and Design, pp 41-67, Marcel
      Dekker, Inc., 1979.

18.   Continental Oil Company, Phase I, The Pipeline Gas Demonstration
      Plant, Stamford, Connecticut.   FE-2542-13.

19.   Fluor Engineers and Contractors,  Inc., Engineering Evaluation  of
      Conceptual Coal Conversion Plant Using the H-Coal Liquefaction
      Process, EPRI AF-1297, December 1979.

20.   C.F. Braun and Company, Factored Estimates for Western Coal
      Commercial Concepts, FE-2240-5.

21.   Fluor Engineers and Contractors, Economic Studies of Cpal
      Gasification Combined Cycle System for Electric Power Generation,
      EPRI AF-642.

22.   TRW Study  in Progress.

23.   Shreiner,  Max, Research Guidance Studies to Assess Gasoline from
      Coal by Methanpl to Gasoline and Sasol-Type Fischer-Tropsch
      Technologies, Mobil Research and Development Corp., FE-2447-13,
      August 1978.

24.   Exxon Research and Development Co., EDS Coal Liquefaction Process
      Development Phase IIIA, FE-2353-13, January 1978.

25.   Entering the Synthetic Fuels Age:  Construction Begins on Great
      Plains Gasification Plant, American Gas Association Monthly
      Journal, Vol. 62, No. 9, September 1980.

26.   The Pittsburgh Midway Coal Co., Demonstration Plant Marketing
      Plan:  SRC-II, Demonstration Project Phase Zero, Task 3,
      Deliverable No. 17, Prepared for the Department of Energy, July
      31, 1979.

27.   Alternative Fuels Production Programs Feasibility Study and
      Cooperative Agreements Proposal Award, DOE, August 1980.

28.   SRI International, Draft Final Report   Environmentally Based
      Siting Assessment for Synthetic Liquid Fuels Facilities, Prepared
      for Department of Energy, December, 1979.

                                 180

-------
29.    Mujadin,  M.J.,  Great  Plains  Gasification  Associates  Coal
      Gasification Project,  American  Natural  Resource  Company,
      presented at Conference  on Advances  in  Coal  Utilization
      Technology,  May 1978,  1979.

30.    Energy Information  Administration, Energy Data Reports, Petroleum
      Statement,  Monthly, November 1979.

31.    National  Petroleum  Council,  Petroleum Storage and  Transportation
      Capacities  - Gas Pipeline, Vol.  VI,  December 1979.

32.    U.S.  Department of  Energy, Petroleum Supply  Alternatives  for  the
      Northern  Tier and Inland States  Through the  Year 2000, Vol.  I,
      October 31,  1979.

33.    Energy Information  Administration, State  Energy  Data Report,
      April  1980.

34.    National  Petroleum  Council,  Petroleum Storage and  Transportation
      Capacities  - Pipelines,  Vol.  Ill, December 1979.

35.    Synfuels, September 12,  1980.

36.    Information  provided  to  TRW  by  Robert Garbe, U.S.  EPA, Ann  Arbor,
      Michigan, January 16,  1981.

37.    M.  Ghassemi, K. Crawford and S.  Quinlivan, Environmental
      Assessment  Report:  Lurgi Coal  Gasification  Systems  for SNG,
      EPA-600/7-79-120,  May  1979.

38.    M.  Ghassemi, K. Crawford and S.  Quinlivan, Environmental
      Assessment  Data Base  for High-Btu Gasification Technology,  Vols
      I-III, EPA-600/7-78-186a, September  1978.

39.    R.J.  Young,  Potential  Health Hazards Involved with Coal
      Gasification, PHEW  (NIOSH) Technical  Report, No.  79-113,
      Cincinnati,  Ohio,  November 1978.

40.    NIOSH Criteria for a  Recommended Standard, Occupation Exposures
      in  Coal Gasification  Plants, DHEW (NIOSH) Technical  Report  No.
      78-191, Cincinnati, Ohio, September  1978.

41.    M.  P.  Kilpatrick, et  al., Environmental Assessment:  Source Test
      and Evaluation Report -  Wellman-Galusha (Ft. Snelling) Low Btu
      Gasification, EPA-600/7-80-097,  May  1980.

42.    Information provided  to  TRW  by R.  Dwyer,  Illinois  State
      Geological  Survey,  Urbana,  Illinois, January 22, 1981.

43.    TRW Energy Systems, Carcinogens Relating  to  Coal Conversion
      Processes,  Final Report, Contract No. E(49-18)-2213.

                                 181

-------
44.   Information provided to TRW by Dr. William Lloyd, OSHA, December
      22, 1980.

45.   Hazardous Materials Management Journal, May-June 1980.

46.   Giddings, J.M. and J.N. Washington,  Coal  Liquefaction Products,
      Shale Oil, and Petroleum.  Acute  Toxicity to Freshwater Algae.
      Environmental Science  and Technology,  Volume 15  (No. 1).,
      106-108, January  1981.

47.   Giddings, J.M., et al., Toxicity  of  a  coal Liquefaction Product
      to Aquatic Organisms,  Bull. Environmental Contam., Toxicol., Vol
      25, 1-6, 1980.

48.   W.H. Griest,  D.L.  Coffin  and  M.R.  Guerin, Fossil Fuels Research
      Matrix  Program, ORNL/TM-7346, June 1980.
                                  182

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                            APPENDIX A

                      INTERVIEWS WITH POTENTIAL

                     SYNFUEL  SUPPLIERS  AND USERS



                          TABLE OF CONTENTS

                                                                   PAGE


A.I        Expected Involvement in Synfuel  Industry   .......   A-2

A. 2        Synfuel  Products Market  ................   A-2

A. 3        Significant Factors Impacting the Synfuel Industry   . .   A~4

A. 4        Anticipated Period of Time to Buildup, Establish
          a Commercial Synfuel  Industry  .............   A-4
A. 5       Synfuel Products Compared to Petroleum-Based
          Products     ......................    A-4

A. 6       Anticipated Modifications to Facilities or
          Procedures for Marketing Synfuel Products  .......    A-5

A. 7       Awareness of Environmental Issues Relating to
          Synfuel Utilization  ..................    A-6
SUPPLIERS
USERS
          Exxon Company, USA	    A-7
          TOSCO	    A-15
          Shell Oil Company	    A-18
          American Petroleum Institute 	    A-20
          General Motors  	    A-25
          A Major Chemical Company 	    A-23
          Department of Navy	    A-29
          Electric Power  Research  Institute   	    A-32
                                 A-l

-------
     A limited series  of  interviews  were  conducted with potential  suppliers
and users of synfuel products  to  sample  firsthand the views and projections
of industrial players  in  the  synfuels  market.   Participating firms and
organizations are  listed  in Table A-l.   Interviews were conducted  at the
firms' locations.   A set  of standard issues was covered at each interview.
The responses of each  participant are  summarized later in this Appendix.
The general  conclusions  and some  of  the  significant points made by the
participants are broadly  outlined here.

A.I  EXPECTED INVOLVEMENT IN  SYNFUEL INDUSTRY

     The suppliers  generally  indicated a  broad interest in synfuel
technologies because all  resources (oil,  coal, shale) are limited  and each
may have constraints to  full  development  so all potential supply
technologies must  be constantly assessed.

     Those technologies  that  produce products most similar to existing
products or  are most easily adapted  to the present production, marketing,
and utilization systems  are most  favored.  In general, shale oil was
thought to be most  nearly cost competitive and commercial.  Crude  shale oil
will be upgraded and hydrotreated to yield a desirable refinery feedstock.
For the foreseeable future, existing refinery capacity will be used for any
shale oil  production.

     Medium-Btu gas from coal  is  thought to be cost competitive with higher
priced imported gas.   High-Btu gas (SNG)  and coal liquids are generally
projected  as longer-term potential supplies.  Synfuel plants will  be
located near resources;  refineries will  be located as they traditionally
are—near  sources  of supply and users.

A.2  SYNFUEL PRODUCTS  MARKET

      In general, two major trends appear to be impacting the markets that
synfuel products may enter.   The  demand for gasoline appears to be
declining  because  of  improved vehicle efficiency, conservation and
penetration  of diesel  fuel.   For  the liquid fuels, the middle distillates
(diesel and  jet fuel,  home heating oil)  will drive the liquid synfuels
market over  the next  few years.  The need to find an alternative to oil as
a boiler fuel, and the need to secure long-term supplies of chemical feed-
stocks have  generated  a  great deal of interest in medium-Btu gas supply
technologies.

     Both  suppliers and  users view shale oil as a potential premium
refinery feedstock — ideal for production of middle distillates.   Initially,
the shale  oil will  be  marketed to refineries in the Rocky Mountain  region
until most of the  spare  refinery  capacity is utilized.   The next market to
develop will be the Midwest,  which is projected to have  a significant  (up
to 300,000 BPD) spare  capacity over  the next 20 years.
     The likely uses of  medium-Btu gas will be in plants that produce
chemical feedstocks and  fuel  gas  for onsite (or nearby)  use and in  electric
utility combined cycle plants.


                                     A-2

-------
                    TABLE A-l.   INTERVIEWS WITH POTENTIAL SYNFUEL  SUPPLIERS AND  USERS
            Suppliers
                                                        Expected Synfuel  Market  Participation
i
CO
  Exxon Company,  USA
  Houston, TX
 *TOSCO
  Los Angeles,  CA
  Shell Oil  Company
  Houston, TX
  American Petroleum Institute
  Washington, D.C.

Users
  General  Motors
  Warren,  MI
  A Major Chemical  Company
                                                                    Actively developing shale oil, coal  gasification
                                                                    and coal liquefaction.
                                                                    Supplier of shale oil  feedstock to refiners.
                                                                    Coal gasification; some interest in  oil  shale.
                                                                    Representative of petroleum industry  interest.
                                                                    Liquid transportation fuels, primarily  hydrocarbons.
                                                                    Gaseous and liquid feedstocks for chemical  industry.
              Department of Navy
              Washington, D.  C.
              Electric Power Research Institute
              Palo Alto, CA
                                                        Liquid fuels  for  military equipment; airplanes, ships,
Gaseous and
                                                                           fuels  for utility boilers.
              Telephone interview

-------
     Coal liquids will  probably impact  the  market  for heavier fuels--
stationary turbines,  special  diesels,  and,  potentially home heating oil.
(If medium-Btu  gas  is  successful,  use  of coal  liquids as  a boiler fuel  may
be limited.)  Methanol  from  coal  is  viable  as  a  technology, but  there is  no
marketing infrastructure  to  handle this product.

A.3  SIGNIFICANT FACTORS  IMPACTING THE  SYNFUEL INDUSTRY

     •    Costs of  synfuel  products  versus  petroleum and  gas.

     t    Availability  of supplies.   The need  for  a  secure supply of
          transportation  fuels  by the  military,  the  need  for long-term
          supplies  of  chemical  feedstocks by some  industries, the general
          decline in  the  petroleum resource, the uncertainty in  import
          supplies.

     •    Changing  market patterns and  trends  (see A.2 above).

     t    Government  participation.   The SFC and creation of incentives are
          necessary but regulations  will produce uncertainty and hinder
          development.

A.4  ANTICIPATED PERIOD OF TIME TO BUILDUP AND ESTABLISH  A COMMERCIAL
     SYNFUEL  INDUSTRY

     The  consensus  response  of  the suppliers was that the total  synfuel
market may develop  less rapidly than the national  goal plan; the rate of
development will probably be closer to  the nominal scenario described in
Section 3.  The consensus places  total  production  at 1.0  to 1.5  MMBPD by
1990.  The suppliers  indicated  plans for commercial  readiness for non-oil
shale technologies  within the next three to five years.

     The  major  factors  impacting  the buildup rate  include the degree of
government support  and  the effect of environmental attitudes towards
industry, especially  regarding  the Clean Air Act and water regulations.

A.5  SYNFUEL  PRODUCTS  COMPARED  TO PETROLEUM-BASED  PRODUCTS

     In general, the  suppliers  take the view that  there will be  no
discernable or  significant differences  in the  refined liquid products
produced  from synfuels compared to products from petroleum or natural gas.
These products  from synfuels will  be produced  to specifications  by using
conventional,  well-known  processes.   This naturally leads to the consensus
among suppliers that  no additional or special  concerns are warranted
regarding synfuel products markets.   Some specific points follow:

     •    For  shale oil,  there  are no compositions unique to shale oil
          compared  to  petroleum.   The physical and chemical characteristics
          of  synfuel  products will be essentially  the same as those from
          refined petroleum  products.   The products  are processed to
          specifications  and the  users  will identify no differences.


                                     A-4

-------
    •    Concerning  the  industry's  ability  to  process  shale oil  (and coal
         liquids) to  acceptable  specifications,  it  is  pointed out that
         crude  petroleum,  as  derived  from various  locations, exhibits a
         range  of compositions that brackets oil  shale.   Unacceptable
         quantities  of nitrogen,  sulfur  and arsenic  are  removed  by
         upgrading,  hydrotreating,  or  other processing steps.   This
         additional  processing or upgrading is  a matter  of economics.  The
         trend  in the U.S.  is to  upgrade the heavy  residuals.   Some of the
         technologies developed  for this purpose can be  used in  the
         processing  and  refining  of synfuels.

         The  users,  on the other  hand, supplied  varying  responses to
         identifying  differences  between liquid  synfuels and conventional
         products.

    •    While  users  expect the  suppliers to produce synfuel products to
         specifications,  it is not  clear that  the  current specifications
         are  sufficient  to guarantee  performance and environmental
         acceptability.   For  example,  severe hydrotreating may destroy or
         alter  certain characteristics of fuels  (e.g., lubricity) so that
         trade-offs  in processinq to  remove contaminants versus
         preservation of performance  may limit  the  degree of additional
         processing.

    •    Of the synfuel  products  being considered,  coal  liquids, if used
         directly, are perceived  as most different  from  conventional
         products  regarding toxicity  and composition.

         The  users interviewed are  generally involved  in tests of various
         synfuel  products  for both  performance  and  potential environmental
         impacts.  These tests are  expected to  determine the degree of
         additional  processing required  and the  acceptability of synfuel
         products.

A.6 ANTICIPATED MODIFICATIONS TO  FACILITIES OR  PROCEDURES FOR MARKETING
    SYNFUEL PRODUCTS

    From the  suppliers'  viewpoint,  no special  facilities or procedures are
anticipated  for  the distribution,  handling,  or  storage of synfuels.  In
general, products will be processed  to specifications and no problems over
and above marketing of conventional  products are  expected.  Coal  liquids,
with their  highly aromatic contents, are  a  possible exception and need to
be studied.

    The users generally  see a need  for some modification of end use
devices.  Engines and combustors  must  be  modified to use the synfuels
efficiently and  cleanly.   The users  view the process of synfuel product
acceptance  as  one of  interaction  between  users'  needs and the costs  and
capabilities  of  additional  processing  by suppliers.  For example, transpor-
tation  fuels  are usually  qualified or  tested for such characteristics as
sulfur,  nigrogen, trace  elements, aromaticity,  volatility, octane  quality,


                                    A-5

-------
and long-term materials compatibility.  The  fuel-bound  nitrogen  in  shale
oil-derived fuels may prove not to affect engine  performance  at  all  for
nitrogen levels yielding emissions of"1.2 grams per  mile,  but it may turn
out to be too costly to process fuel to meet a standard  of 1.0 grams per
mile.

     Because of the large capital investment, users'  consensus is that very
few modifications to end use equipment will  actually take  place  over the
next 20 years; the primary path to acceptable synfuel  use  will probably be
through refining and processing.

A.7  AWARENESS OF ENVIRONMENTAL ISSUES RELATING TO SYNFUEL UTILIZATION

     In general, the suppliers expect to  produce  most  products to
specifications such that no environmental problems over and above those
present in the marketing of conventional  products will  be  encountered.
Some specific points follow:

     •    Tests indicate that  shale  oil has  the same potential carcinogen-
          icity as some conventional  industrial fuels  currently in use.
          Polycyclic aromatic  hydrocarbons  (PAH's) are found  to the same
          extent in shale oil  and crude oil.  Hydrotreating can be used to
          remove PAH's.

     •    The storage of incomplete  refined  or  upgraded product may present
          a problem in the disposal  of  solid wastes  from the  bottoms in the
          tank.

     •    The handling and burning of heavy  fuel  oils, especially from
          coal, may be an issue.  This material  is likely  to  be more
          aromatic and toxic;  probably  carcinogenic.  Testing is required.

     The users anticipate that  handling,  distribution, and use of heavy
synthetic fuel oils will be an  issue.   In the  utilization  of both trans-
portation and boiler fuels, combustion  emissions  are likely to be the
primary constraint.  For low-volume  specialty  chemicals or by-products
derived from synfuels, the requirements of  the  Toxic Substances Control
Act, if imposed, would probably  keep these  products  from the market.
                                     A-6

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                                SUPPLIERS
                        Exxon Company, U.S.A.
                        Houston, Texas

                        TOSCO
                        Los Angeles, California

                        Shell Oil Company
                        Houston, Texas

                        American Petroleum  Institute
                        Washington, D.C.
                             EXXON  COMPANY,  USA

                             September  22,  1980
For Exxon:
T. M. Campbell


R. Campion



T. W. Day


W. W. Hesser


L. Kronenberger


J. P. Racz


R. C. Russell
Technical Coordinator,
Synthetic Fuels Dept.

Environmental Conservation
Coordinator, Public Affairs
Office

Senior Staff Planning Analyst,
Corporate Planning Dept.

Business Development, Synthetic
Fuels Dept.

Regulatory Affairs Coordinator,
Synthetic Fuels Dept.

Project Development Manager,
Synthetic Fuels Dept.

Director, Environmental Health
For TRW:
E. M. .Bonn
J. 0. Cowles
                                    A-7

-------
1.  Expected  involvement  in  synfuels industry:

     t    Exxon  is  actively  and broadly involved in synfuels from shale and
          coal.   They  own  a  60% interest in the Colony Oil Shale Project.
          Exxon  is  a major participant in an East Texas coal gasification
          project  (based  on  the Lurgi process) for production of
          intermediate  Btu (IBtu)  gas.  They are testing a catalytic
          gasification  process for production of SNG on a small pilot unit
          and  are  actively developing the Exxon Donor Solvent (EDS) direct
          coal  liquefaction  process  at their Baytown, Texas R&D center.

     •    Synfuel  products and relative costs estimated by Exxon are shown
          in  Exhibit  1.

     •    Shale  oil

                Probably cost-competitive with crude oil now.

                Raw shale  oil  is equivalent to low-grade crude.  It is
                aromatic,  and contains arsenic, sulfur, nitrogen but has
                relatively  little residual.

                Through coking and hydrogenation processes, raw shale oil
                can be  converted to a premium crude (low in sulfur and
                nitrogen with no residual).  For example,  in the Colony
                project, raw shale oil will be coked, the  arsenic removed
                and the distillates run through a hydrotreating process.
                This will  result in a prime feed for refineries--it should
                command a  higher price than sweet crude.

                Will  use existing refinery capacity.  May  need to modify
                some refineries for upgrading shale oil.   Note that refinery
                processes  are always  in evolution just to  handle different
                crudes.   So shale oil is just an extension of current
                technology  and practice.  Refineries have  been continuously
                developing  capability for handling heavier, dirtier crudes
                as  the  world's sweet  crude supply runs out.  Shale crude is
                right  on the trend line for petroleum feedstocks towards
                heavier crudes.

                Shale  oil  will produce essentially the same products as
                currently  produced from petroleum (in the  sense of ASTM  fuel
                specs).

     •    Intermediate Btu Gas

                Technology based on Lurgi is probably cost-competitive  now
                with imported gas but not with lower price regulated gas.
                Exxon  favors Lurgi process.
                                     A-8

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                           EXHIBIT I.  TYPES OF SYNFUELS AND RELATIVE COSTS
vo
Synfucl
Shale Oil
Process
Heating
KOf
Products
Most Similar To
Cost
Base
            Intermediate
            Btu Gas
            (IBG)
            Synthetic
            Natural Gas
            (SNG)

            Methanol
            From Coal

            Other Liquids
            From Coal
Oil Shale

Gasification
Of Coal
Gasification
Of Coal And
Methanation

Gasification
And Synthesis

Indirect And
Direct Routes
Crude Oil

Gas, Largely CO And
H2 For Industrial
Fuels Or Chemical
Feedstock

Gas, Largely Methane
For Distribution
With Natural Gas

Fuel Grade Methanol
And SNG (50/50)

Gasoline, Distillates,
Heavy Fuel Oil And
Up To 50% SNG
  Base
15 to 25%
Higher
20 to 30%
Higher

40 to 60%
Higher

-------
               Used for  industrial  fuel  gas  or  chemical  feedstock—ideal
               for methanol  production.

     •    Indirect Coal  Liquefaction

               Gives products which  look  like petroleum-based  products.

               Fischer-Tropsch  gives  such a  broad  range  of products—can
               get 75  percent gasoline.

     t    Direct Coal  Liquefaction

               High fraction of  heavy  fuel oil  products.   R&D  aims  at
               upgrading  to  naphtha  and  middle  distillates,  minimizing
               residual.

               The products  from EDS  for example,  are  highly aromatic.  The
               heavy portions must  be  upgraded  by  hydrogenating  or
               hydrocraking  to  produce petroleum-like  products.   The
               naphtha  will  process  easily to a prime  mogas  base stock.
               Products  will be  more  aromatic than petroleum products.
               While aromatic gasoline is fine, middle distillate products
               (e.g.,  jet  fuel)  may  not  be acceptable  by today's standards
               without  excessive hydrotreating.

2.  Synfuel products market:

     •    Shale oil    will  produce  a  premium refinery  feedstock.

     •    Intermediate  Btu  gas  plants  will most likely serve two end uses;
          produce  industrial fuel  gas  and chemical  feedstock from a single
          plant.   Ideal  for  methanol  production.

     •    Methanol   major  questions  are whether or not  methanol will
          emerge as a  fuel  for  both  transportation and stationary uses.
          There is no  marketing  infrastructure  to  serve  methanol
          distribution  and  end-use market.   Technically, methanol  is a
          viable fuel.   There is not  much potential  as a blend with
          gasoline.  Can  go  directly  to  gasoline from  methanol,  but this
          begins to look  like indirect liquefaction.   Could  be used
          initially in  a  regional  system (fleets,  counties,  military
          facility) or as  a  prime liquid industrial  or utility peaking
          fuel.

     •    Coal liquids

               Coal liquefaction produces a  high fraction of heavy  oils.
               Actually,  probably  don't  want to make heavy fuels from coal.
               The traditional  market  for these fuels  would  be utilities/
               industrial  boilers  and  these  are predicted to convert to
               coal combustion  and  IBtu  gas. Some heavy fuel  oil  may be
                                    A-10

-------
     produced in coal conversion plants.  This material will  be
     more biologically active than similar boiling  range
     petroleum fractions.  It will be used as a single
     product—not blended.

     From EDS, for example, expect to produce fuel  for  stationary
     turbines, special diesel (marine) fuel and home heating  oil.
     Actually, for home heating oil, won't meet the API spec  on
     gravity and this will have to be changed or the fuel
     extensively hydroproduced.  Only minor retrofits may  be
     required for home heating applications.

     For the EDS process, Exxon is working to minimize  the  heavy
     fuel fraction in favor of transportation fuels.  Could get
     all Naphtha and distillates (up to boiling point of
     900 -950 F).  Options are many but only at the lab stage
     now.

     SASOL for example is predicated on the fact that South
     Africa must rely on its coal  resource base and use existing
     gasoline powered equipment.  Their economy is  too  small  to
     generate new equipment for methanol for example.   These
     considerations determine the product slate that SASOL
     produces.

Projections of demand for synfuel  products are given in latest
corporate planning summary, "Exxon Company, U.S.A.'s Energy
Outlook 1980-2000".  Note   for the first time, Exxon is  looking
beyond 1990.

     On projections of supplies, Exxon generally gives  a  lower
     picture than DOE.

While 1980 is a  unique year   since there appears to be no high
peak in summer gasoline demand it is difficult to assess  if this
is a permanent trend or a temporary response to rising  prices.
We are in the midst of a cycle now.

     See Exhibit 2   Exxon predicts a decline in gasoline  demand
     to the year 2000.  Gasoline and fuel oil are shown as
     declining faster than the overall petroleum demand.   This  is
     due to increased efficiency, conservation in automobile
     uses, substitution of diesel engines  for gasoline  engines,
     and no new  oil-fired utility capacity.  Distillate products
     (home heating oil, diesel, jet fuel)  and "other" products
     (petrochemical feedstocks) show a growing demand.

     Petroleum will continue to be used  for products where its
     uniqueness  brings highest value   i.e., transportation  fuels
     including gasoline.
                           A-ll

-------
                       EXHIBIT II.  UNITED  STATES  PETROLEUM DEMAND BY PRODUCT
                      Growth Rates, %/Year
   Million
    BPD

    20r
    15
i
i—•
ro
    10
     0
Mogas
Dist.
HFO
Other
             Total
J
i
1
                                                 34
1
                                                              Other
i
1
1
                                              Distillate Products
                                                            Million
                                                             BPD
                                                                           37
                                                                                15
                                                             10
0
          1960    1965     1970     1975    1980    1985     1990     1995    2000

-------
              Synfuels will  impact  the  market  most  readily in  the growing
              market areas,  the middle-of-the-barrel  products.

3.   Significant  factors impacting  demand for  synfuels:

    •    Costs    see Exhibit  1.

    •*   Synfuels  are expected to account  for  difference  between  projected
         demand  for petroleum products  and projected  supplies.   Domestic
         oil  supplies are  projected  to  decrease  from  about 10  MMBPD  in
         1980 to  about 6 MMBPD in 2000.   Imports  of about 8 MMBPD are
         expected  to remain,  at best, constant to 2000.   Overall  demand
         for  petroleum will  be about  16 MMBPD  in  2000 with oil  shale and
         coal liquids supplying from  2  to  4  MMBPD.  The  gas supply/demand
         analysis  shows gas  demand  dropping  from  10 MMBPD to about 8 MMBPD
         in 2000.  Domestic  production  decreases  from 8 MMBPD  and
         synthetic gas accounts for  0.5 to 1.5 MMBPD  by 2000.

    •    Significant government action  impacting  synfuels:

              incentives

              shale land leasing

              import policy

4.   Anticipated  period of  time to build-up,  establish commercial  synfuels
    industry:

    §*   Synthetic gas from  coal  is  projected  to  be commercially  available
         beginning in the  mid-80's.   Total annual synthetic gas production
         could  range to 0.5  MMBPD by  1990.   By 2000,  synthetic gas
         production could  range between 0.5  to 2  MMBPD or up to 18%  of
         total  supply.

    •*   Shale  oil and coal  liquids  will  become  commercially available
         beginning in the  mid-80's  (shale  oil  will  appear earliest,  coal
         liquids  later in  the 80's).  Production  will  range between  0.7
         and  1  MMBPD by 1990.  In 2000,  synthetics  could  comprise about 20
         to 30%  of U.S. oil  supply  or 2 to 4 MMBPD.

    •    The  target on EDS is to  have enough R&D  information by 1983 to
         design  a  commerical  plant.
       From  "Exxon  Company,  U.S.A.'s  Energy Outlook 1980-2000" Dec., 1979
                                    A-13

-------
5.   Synfuel products  compared  to  petroleum based  products:

     •    Shale oil  feedstock to  refinery,  after  hydrotreating,  will  be
          considered as  a  premium  feedstock.   Products  refined  from oil
          shale will not be  different  from  products  produced  from crude.

     •    Coal  liquids  currently doing tests on  EDS  product.   Each R&D
          sponsor  receives  some of the product and tests  are  underway for
          end use  and  combustion  tests and  for toxicology.   Information
          should become  available  in  1981.

6.   Anticipated modifications  to  facilities  or procedures  for  marketing
     synfuel products.

     •    No modifications  are  anticipated  other  than  additional  hydro-
          processing facilities as for example in  use  of  shale  oil  and lack
          of marketing infrastructure  for a new product like  methanol.


     •    May need  separate  system for heavy  aromatic  products  but  we have
          experience with  this  today.

7.   Awareness  of  environmental issues relating to marketing  of synfuel
     products:

     •    Handling  and burning  of  heavy oils  may  be an  issues.   This
          material  is  likely to be more aromatic  and will  contain PNA's.
          Will  have to do  some  testing here.   Have handled  similar
          petroleum products and  know  how.   But burning is  another  story
          don't know long-term  health  effects, if  any,  of combustion
          products.

     •    In the case  of shale  oil, there is  very little  residual.   It is
          processed to clean products  and looks like conventional petroleum
          products.

     •    For middle distillates  (400-650°F cut),  knocking  nitrogen out of
          the rings is important.   Product  may be  more  aromatic but the
          customer  is  used  to handling these  products.   Any contaminants
          can be removed.   Below 400 F cut  (gasoline and  lighter) ng PNA's;
          below 500 F  cut  only  naphthalene; 4, 5,  6 rings above 700 F.

     •    PNA's    unleaded  gasline, for example,  has higher content of
          PNA's.   High,  severe  reforming adds rings (and  hence  PNA's) to
          product.   Catalytic converter in  car removes  them.   Removal can
          be accomplished  by additional processing should this  be
          necessary.   PNA's  in  gasoline and synthetics  should not be a
          problem.   PNA's  that  may also result from inefficient burning
          (e.g., for fuel  oil applications) will  be removed by  conventional
          emission  control  devices.
                                     A-14

-------
     •     Methanol  has  an  effect  on  the optic nerve, otherwise more benign
          than  gasoline,  for  example.   Some studies have shown that
          methanol  spills  in  water are less of a problem than petroleum.
          If  gasoline gets  into  lungs--it  is an acute problem.

     •     Foreign  (to U.S.)  experience on  environmental  issues will have no
          real  impact on  Exxon's  programs.   Do expect to learn from the
          SASOL experience.

     •     As  far as  meeting  current  product specifications, don't really
          anticipate any  problems.

8.    Suggestions for EPA  approach to controlling utilization of synfuel
     products:

     •     No  need  for new controls for synfuels.  See synfuels as evolution
          of  conventional  products and regulations on existing products
          should apply.

     •     Concerned  that  regulation  issue  may impede development of
          synfuels  industry.
                                   TOSCO

                  Telephone Interview   September 16, 1980
For TOSCO:
For TRW:
G. Ogden
                   M.  Coomes
E. M. Bohn
Manager, Supply and
Distribution Department

Manager, Environmental Health
Effects
1.   Expected  involvement  in  synfuels industry:
     •     TOSCO  is  involved in the synfuel  industry primarily as a supplier
          of  shale  oil  feedstock  to refiners.

     •     TOSCO  has a 40% interest in the Colony project; Exxon owns a 60%
          interest.   The TOSCO-II surface retorting process will be used.
          The product will  be a severely hydrotreated shale oil directly
          suitable  for the  refinery feedstock market.  TOSCO is also
          involved  in the Sand Wash project in Utah but this project is
          only in the study stage.
                                    A-15

-------
2.  Synfuel products market:

     •    TOSCO's marketing  strategy  is  to  enter  the  market  early in  the
          Rocky Mountain  region.   There  is  at  this  time,  some  spare
          refinery  capacity  in  this  region.   In  addition, although this
          region produces  petroleum  crude  for  export  to  other  parts of the
          country,  the  region  is  a net  importer  of  refined transportation
          fuels.  Refiners  in  this region will  regard shale  oil  as a
          premium feedstock  because  of  the  higher yield  of middle
          distillate, and  transportation fuel  products obtained  from
          refined shale oil.

     •    Once  the  Rocky Mountain area  market  is  satisfied,  the  next  or
          longer-term market  is  expected to be in the upper  Midwest.
          Currently, there  is  about  200,000 BPD  open  pipeline  capacity to
          refineries in St.  Louis, Chicago  and Detroit.   This  is expected
          to  increase to 300,000  BPD  open  capacity  by 1985.   The export
          (from the Rocky  Mountain area) market  is  expected  to develop in
          the Midwest.

3.  Significant factors impacting demand for synfuels:

     •    Availability  of  petroleum  crude  oil, especially as it  may be
          impacted  by production  from the  Overthrust  Belt in the western
          states will impact  the  market  for shale oil.  Overthrust
          production could  absorb all  in-place pipeline  capacity.

     t    As  long as the U.S.  imports oil,  there  will be a demand for
          domestic  hydrocarbon  that  will provide  some incentive  to look at
          synfuels.  National  security  will  always  be a  consideration.

     •    Government incentives  are  absolutely necessary to  accelerate the
          early development  of  commercial  scale  plants.   The industry is
          not capable of providing the  capital for  such  a large  investment.

4.   Anticipated period of  time  to build-up, establish commercial synfuels
     industry:

     •    Highly speculative  but  TOSCO  agrees  that  the Government's target
          of  500,000 BPD from  oil  shale  by  1992  is  reasonable.  In-house
          estimates place  national production  level  at 300,000 BPD by 1990.

5.  Synfuel products compared  to  petroleum-based  products:

     •    Crude petroleum  has  a  range of compositions that bracket crude
          shale oil.  One  exception  is  the  nitrogen content  of oil shale.
          Hydrotreating will  remove  N compounds  (along with  sulfur).   The
          arsenic present  in  oil  shale  would poison refinery catalysts.
          The arsenic is  removed  in  a guard bed  made  up  of spent or
          deact i vated cata1yst.
                                     A-16

-------
         There are  no  compositions  unique  to  oil  shale as  compared to
         petroleum.

    •    As  far  as  end  use  products  are  concerned,  they will  be produced
         according  to  specifications;  gasoline  is  gasoline as defined by
         specifications.  One  must  understand the  refinery process and the
         impact  of  differences  in crude  oil feedstocks to  appreciate the
         production  of  an end-use product.  For example, gasoline is
         produced by blending  several  process streams  to meet a certain
         set of  specifications  (aromaticity,  viscosity, volati1ity,etc.).
         Note—it is not the final  product  itself  that is  defined under
         TSCA for example.   It  is the  chemical  substances  of  the product
         streams that  are listed.

6.   Anticipated  modifications  to  facilities or  procedures  for marketing
    synfuels products:

    •    Oil shale  can  be distributed  in any  of several ways.  It is more
         economical  to  hydrotreat the  crude shale  oil  and  then  distribute
         by  pipeline.

    •    The handling,  distribution,  and storage of shale  oil will be the
         same as for conventional petroleum feedstock.

7.   Awareness of environmental  issues  relating  to  marketing of synfuel
    products:

    •    In  general, no new controls  or  regulations will be required for
         oil shale.  The only  difference from a marketing  standpoint
         regarding  use  of shale oil  is that there  will be  an  increase in
         utilization of hydrocarbon  products  in the Rocky  Mountain area.

    •    Regarding  potential carcinogenicity  of shale  oil, it looks like
         it  will be  bracketed  by  petroleum crudes.   Note—only two
         different  crudes have been  tested to date.

         TOSCO is actively  involved  in toxicity tests  on oil  shale.   (Two
         reports will  be sent  to  TRW.)  Tests on shale oil from the retort
         indicate that  it has  the same carcinogenicity as  some
         conventional  industrial  fuels currently in use.  (The
         characteristics of the fuel  oil depends on processing and
         feedstock  used.)   As  far as  polycyclic aromatic hydrocarbons
         (PCAH's) are  concerned,  no  difference  between shale  oil and crude
         oil has been  found.   Hydrotreating  reduces PCAH's in shale oil.

         Carcinogenicity is really  an  emotional issue.  TOSCO finds that
         shale oil  has  the  same or  lesser  potential for impact than
         conventional  crude.
                                    A-17

-------
8.   Suggestions  for  EPA  approach  to  controlling  utilization  of synfuel
     products:

     •   Compare  hydrotreated  oil  shale  to  petroleum crude.

     •   No special controls needed.


                             SHELL OIL COMPANY

                             September 22,  1980


         For  Shell:          K.  Geoca            External  Activities

                             C.  Jones            Manager,  Business  Center
                                                  for Synfuels

         For  TRW:            E.  M.  Bohn
                             J.  0.  Cowles


1.  Expected  involvement  in  synfuels  industry:

     •    Shell Oil Company  has  not really  been  involved actively in
          synfuels until  now.  Have had  some  peripheral  R&D  activity  and
          have  an  interest  in:

                Tar sands  in  Canada

                Oil Shale  --  Modest interest

                Coal as a  general  resource

          Shell has a significant  position  in coal  resources  in the U.S.
          and this has led to  synfuels interest.

     t    Shell is now acquiring coal  gasification  technology from  Shell-
          Koppers  and expects  to be on leading  edge of second generation
          technology.

          Studies  now underway by  EPRI should show  Shel1-Koppers technology
          more  efficient  than  Texaco.

2.  Synfuel product market:

     0    Will  produce medium  Btu  gas from  Shell-Koppers process.

     •    Market,  in  order of  penetration will  probably  be:
                                     A-18

-------
              Power Plant  fuel

              Industrial boilers

              Feedstock  for  chemicals,  methanol

              Feedstock  for  liquefaction  of  coal

              Coal  liquefaction  (Mobil-M)

3.   Significant  factors impacting  demand for  synfuels:

     •    SFC  formation   Energy  Security  Act

     •    Windfall  profits  tax  and impact  on  investment  in  synfuels

     •    Price  of  crude  oil

4.    Anticiapted period of  time to build-up,  establish  a commercial
     synfuels  industry:

     •    Shell-Koppers pilot plant in  Amsterdam now.   By 1984, 1000 T/day
         demonstration plant planned.

5.   Synfuel  products compared to  petroleum-based products:

     t    No difference for Shell-Koppers  process  considered here

6.    Anticipated modifications  to  facilities  or procedures  for marketing
     synfuel products.

              Not  applicable

7.    Awareness of enviornmental issues  relating to marketing of synfuel
     products:

     t    Expect to comply  with regulations as they are now known.

8.    Suggestions for EPA  approach  to controlling utilization of synfuel

              None
                                    A-19

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                     AMERICAN  PETROLEUM  INSTITUTE  (API)

                             September 5,  1980


For API:           B.  R.  Hall                Synthetic  Fuels  Director
                   B.  L.  Petersen            Senior  Analyst  for Synthetic
                                             Fuel s

                   D.  B.  Disbennett          Health  Affairs  Coordinator
                   E.  Rucker                 Environmental  Affairs  Assistant
                                             Director

                   P.  J.  Fuller              Regulatory Analyst

For TRW:           E.  M.  Bohn
                   R.  S.  Iyer


1.  Expected  involvement  in  synfuels  industry:

     •    The oil  industry  is  interested in  those  technologies that  are
          most directly transferable to the current manufacturing and
          distribution system.   Oil  is a finite resource and they  feel  that
          they need  to be involved  in a  broad array of potential
          opportunities (e.g.,  SRC's, EDS,  etc.),  constantly assessing the
          economics  and technology.

     •    As  far as  timing  for  synfuel industry build-up,  some at  API  feel
          that TRW's nominal scenario looks  very  reasonable.   They feel
          oil shale  will  come  along  earliest   the  technology is  further
          along and  the economics  look better than  the rest  now.   Major
          unknown  is the  development  costs  as they  are impacted by
          environmental legislation  not  yet  promulgated.   Probably won't
          get to 500,000  BPD by  1987   permits  will hold up  development.

     t    Synfuel  plants  will  be  located near the  resource.   Refineries
          will be  located as they  have been  traditionally  near supply  or
          near population density.   The  selection  of a certain technology
          (e.g., gasifier type)  is  highly site  specific.   Note   second
          generation gasifiers  such  as TEXACO and  CONOCO are being selected
          now.

2.  Synfuel  products market:

     •    In  the case  of  oil shale,  syncrude will  be sent  to a refinery and
          a  complete slate  of  products will  be  produced.   The military
          market is  forced  into  securing transportation  fuels, especially
          jet fuel  from oil shale.   At this  moment, there  is a big need for
          testing  of synfuel products—this  will  be largest  demand for
          products over first  few years.


                                     A-20

-------
     •    The  consumer  will  know no  difference between traditional
         petroleum  fuels  and  synfuels.   There is  no identifiable "demand"
         for  synfuels.  All  toxic  components  will  be removed before
         consumer sees  products.   All  products will  meet current specs.
         Such  things as aromatics,  carbon,  trace  elements, will  be
         control led.

3.   Significant  factors  impacting  demand  for synfuels:

     •    A  synfuel  industry  has to  be  developed   even though it may
         strain  our resources.   As  far as  captial  goes we can do it if the
         need  is there.   In  the sense  of a  national  effort or emergency,
         we can  do  whatever  we  want.

     t    Conservation  has  impacted  the demand for  fuels.  This is  a direct
         result  of  price  increases  and the  current economic recession.
         The  long-term  trend, even  with  conservation will  be one showing
         an increase of 1  percent  per  year, somewhat below traditional
         trend.  The fact  is, we  are dealing  with  a finite resource and an
         increasing world  demand,  especially  in the third world  countries.

     •    Government incentives  and  regulations will  be a big factor.  OPEC
         price  control  can  be overcome by  price guarantees.  Beyond the
         Synthetic  Fuels  Corporation,  one  can't predict what will  happen.
         Synfuels will  be  treated  as any other business investment oppor-
         tunity.  It is a  matter  of short-  vs. long-term and synfuels are
         definitely a  long-term opportunity.   Most of the large  oil com-
         panies  will be synfuel  producers    when  it happens, they  intend
         to be  there.

     •    Government regulations produce  another series of unknowns in the
         investment decision.   They raise  the margin for success.
         Government is  not  consistent.  On  the EMB, we don't need  a new
         agency   rather,  revise  existing  legislation and regulations.

4.    Anticiapted  time to build-up,  establish commercial synfuels  industry:

     •    The  TRW nominal  scenario  looks  very  reasonable; API agrees with
         it.   As far as build-up  flattening out after initial plants are
         built,  API feels  most  development  data will be obtained over next
         5-10  years and the  industry may have no  need to pause.   The
         build-up depends  very  directly  on  government participation and
         the  availability  of foreign crude  oil at  a competitive price.

     t    Environmentally,  the Clean Air Act is key—water is next.  How
         these areas are  going  to  trend as  far as  business encouragement
         goes  over  the  next  few years  is a  key issue.  TSCA may also be
         key  depending  on  what  the implementing regulations say.

5.   Synfuel  products compared to petroleum-based products.
                                    A-21

-------
     t    As far as physical  and  chemical  characteristics of synfuel
          products are concerned,  they  will  be esstentially no different
          than the refined  petroleum-based products.   After refining  and
          upgrading, all  products  will  meet  product  specifications.

     •    All petroleum  crudes  are different and the  processing is tailored
          for each crude.   Product specifications are satisfied by various
          degrees of hydrotreating.   This  additonal  processing or upgrading
          is a matter of  economics.   The  trend in the U.S.  is to upgrade
          the bottom of  the barrel.   The  need for additional hydrogen is
          the same problem  posed  for  synfuel upgrading.   Processing  and
          refining of synfuels  will  be  very analogous to conventional
          petroleum processing  problems.

          Note   the characterization  of  petroleum has been going for years
          and it will continue.   The  processes will  continue to be improved
          as a more complete  basic understanding of the nature of petroleum
          is obtained.

     •    Technically, the  industry can meet product  specifications  for
          synfuel-based  products.   The  market place will handle this  aspect
          well   the buyer  will  specify and the supplier will meet the
          specs.  Price  of  products will  depend on specifications.  One
          concern may be  the  impact EPA may have on new specifications.

6.    Anticipated modifications  to  facilities or procedures for marketing
     synfuel products:

     •    As far as synfuel  products  are  concerned, through the year  2000,
          there will be  no  change  in  end  use or utilization devices  and
          equipment   one must  accept  this fact.  Products will be produced
          for this equipment  according  to ASTM specifications.  One
          possible exception  is  the nitrogen content  which is under  study
          now.  Another  exception  may  be  methanol production.  Some
          equipment modification  would  be needed for  methanol.  We might
          see fleet cars  running  on 100%  methanol in  the 1990's.

     •    As far as handling  and  distributing synfuel products, there will
          be no risk for  end-products  since these will meet current
          specifications.  All  potential  contaminants and toxic material
          can be removed  in processing.

     •    Transporting syncrude  may be  a  problem.  The syncrude will  be
          hydrotreated to the point that  is meets specs for pipelining
          (corrosion, pumping,  pour point specs).  It is a matter of
          economics and  the entire system must be considered.

     •    In the case of  some products  that may not be refined (e.g.,
          boiler fuels),  they are  being characterized now.   Problems  will
          be identified  and handled.   The products will  meet specs.
                                     A-22

-------
7.   Awareness of environmental  issues  relating  to  marketing of synfuel
    products:

    •    For end use  products    after  refining  and upgrading   products
         specifications will be  met.   Environmental  risks  will  be the same
         as for current products.   The assumption  (in  the  draft report)
         that toxic feedstock  going  in means  toxic product coming out is
         wrong.

         Economics considered,  processing  will  be  tailored to meet product
         specs.  One  cannot  assume  that there  is  significant difference
         between regular  and synfuel-based end  products.

    •    Important environmental  issues:

              Work place  (synfuel  plant) exposure  is most  important.

              The storage of incomplete refined or upgraded product may
              present  a probelm  in  the disposal of solid waste from the
              bottoms  in  the tank.   The industry  is  dealing with  problem
              the regulations  have  just come  out.

              Spills  are  expected  to pose  no  additional problems  for
              synfuels; API  plans  to work  on  problems  associated  with
              synfuel  spills.

    •    See Exhibit  3   Toxicological  Assessment  of Retorted Shale Oil
         Refinery Products  and  Streams  a summary of  tests being
         sponsored by DOE,  DOD  and  API.

8.   Suggestions for EPA approach to  controlling utilization of synfuel
    products:

    •    When considering toxicity   compare  synfuels  to  petroleum
         products.  Talk  about  relative impacts,  not absolute.   Do tests
         on both petroleum  and  synfuels.

    t    TSCA could be a  real  stopper  for  industry.   Is  there any reason
         to consider  TSCA for  synfuel  products  that  meet  specs?  API
         intends to make  recommendations to EPA on need  for Premanufacture
         Notices.  An undue  burden  is  placed  on  industry  by requiring all
         test data during the  industry development.  Testing should be
         done concurrently  with  development.

    •    Regulations  must make  common  sense.   They must  not impede
         development.
                                    A-23

-------
ro
                         EXHIBIT III.   CONJOINT TOXICOLOGICAL  ASSESSMENT OF RETORTED SHALE  OIL  REFINERY
                                           PRODUCTS AND STREAMS
^VToata
Shalo Oil ^"^N^
Samploa ^SNN^
Rutort Oil
llydrotroat Product
Ib Fuel Oil
OflBolino Stock
JP-4 (pro-acid Croat)
JP-5 (|>ra-acld treat)
JP-8 (prc-ncld Croat)
DFM (prc-arld Croat)
JP-4 (final)
JP-5 (flnnl)
JP-8 (final)
DFM (final)
Acid Sludge
Retort Oil
Wntor (Separation)
Water (From stripper)
[Acute ||
Oral
noK
R
DOE
II
DOR
A
D
D
D
D
NAVY
A
NAVV
A
NAVY
A
NAVV
A
NAVY
A
D
D
D
1 Acute II
Inhalation ||
D
D
DOE
D
D
D
D
D
NAVY
A
NAVY
A
NAVV
A
NAV1
A
NAVI
A
D
D
D
Acute ||
Dercal
DOE
ft
DOE
D
DOL
A
D
1)
D
D
NAVY
A
NAVY
A
NAVY
A
NAVY
A
NAVV
A
D
D
D
Skin 1
Irritation 1
DOI
n
DOF
n
DOR
A
D
D
D
D
NAVY
A
NAVY
A
NAVY
A
NAVY
A
NAVY
A
D
D
D
1
Irritation II
1)01
n
UOF
n
DOI
A
D
1)
D
D
NAVY
A
NAVV
A
NAV»
A
NA\n
A
NAVI
A
D
D
D
Skia ||
Sensitiza- |
cion ||
D0l»
II
DOE
D
DOE
A
n
D
D
n
NAVY
A
NAVY
A
NAVY
A
NAVY
A
NAVY
A
1)
1)
D
Subacote ||
Dersal
D
1)
D
1)
1)
D
D
NAVY
A
NAVY
A
NAVY
A
NAVY
A
NAVY
A
D
n
D
Chronic |
Inhalation |l
D
1)
D
D
n
n
D
NAVY
A
NAVY
A
NAVY
A
NAVY
A
NAVY
A
1)
n
D
Chronic ||
Ingestion |
1)
D
1)
D
D
D
D
D
D
D
D
U
D
D
D
Carcino- ||
genesis ||
Der=al |
AJ'l
A
API
A
API
A
H
1)
n
D
API
A
D
n
B
API
A
D
D
D
Mutagenesis ||
Hicrobial
DO
A
DO
A
DO
A
00
_|>
noi<
A
IM)I
A
1)01'
A
1)01-
A
1)01
A
DOF
A
DOF
A
DOI'
A
DOI
A
DOI
A
IXII
A
Mucagenesis ||
In Virro |
Marcalisn II
DOK
A
DOK
A
DOK
A
DOK
n
1)01',
n
DOI'.
H
DOK
D
DOK
A
DOK
A
DOK
A
DOF.
A
DOE
A
DOE
D
DOE
n
DOK
H
HutagenesisM
In Vivo
Cytogenetizil
1)
D
DOK
A
U
I)
n
n

DOE
A
n
D
D
DOI!
A
D
D
D
Mutagenesisll
Dominant II
Lelhal
1)
D
U
1)
D
D
n
D
D
D
D
1)
D
D
D
	 1
Terato- |
genesis I
D
U
DO
A
D
D
D
D
DOK
A
DOI>.
A
D
D
DOK
A
1)
n
D
lasunology II
n
D
D
D
D
D
P
D
D
D
D
D
D
D
D
Behavioral ||
Toxicology ||
D
I)
D
D
1)
D
n
NAVY
A
NAVY
A
NAVY
A
NAW
A
NAVY
A
D
II
1)
Analyclcal
CoEprehen- ||
alv» II
AP
A
AP
A
AP
A
Al1
A
AP
A
API
A
AIM
A
AIM
A
AIM
A
AIM
A
AIM
A
API
A
AIM
A
API
A
AIM
A
Analytical ||
PSA's only ||
A*«
API
A
API
A
D
1)
ii
__P
API
A
D
D
I)
API
D
D
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                   A - HtjiliuHt Priority
                   It • lllp.li Priority
                   I) • lie Terrcil until  fiirllu-r I nTii I noil
                   API - Amur I run I'i'i rol i-uin In
                   IMII'. - r>!-|.Ar I mi-til nf  tln.-riiv

-------
                                   USERS
                         General  Motors
                         Warren,  Michigan

                         A  Major  Chemical  Company

                         Department  of the Navy
                         Washington,  D.C.

                         Electric Power  Research  Institute
                         Palo  Alto,  California
                               GENERAL  MOTORS

                              October  1,  1980
For GM:                  J.  M.  Colucci             Department  Head,  Fuels
                                                 Lubricants  Department

For TRW:                 E.  M.  Bonn
                        J.  0.  Cowles
                        K.  Lewis
1.   Synfuel  products market:

     t     The  aim of GM's  research  organization,  including the Fuels and
          Lubricants Department,  is  to  assure  that  GM products will  operate
          on  available  fuels,  now and  in  the  future.   In  1971, GM began
          looking at non-traditional  fuels  as  potential  supplement or
          replacement  for  petroleum-derived fuels.   Alcohols were first.
          Their  primary interest  is  future  hydrocarbons.   Some tests on oil
          shale  distillates  (for  gas  turbines)  have been  done.  GM expects
          to  receive samples  from Gulf,  Ashland,  and Exxon for coal  liquids
          testing early next  year.

     •     Among  the  auto industry,  GM  has the  lead  in application and
          testing of synfuels.   Other  than  some work by Ford on alcohol
          fuels,  there  is  very  little  else  outside  of GM going on in this
          arena.

     t     GM has  a very good  line of communication  with the oil companies/
          suppliers  of  synfuels.   A group,  the Coordinating Research
          Council, made up of representatives  from  the oil, auto and
          equipment manufacturing companies,  has  also been active with work
          on alternative fuels.  The CRC is headed  by A.  Zengel and is
          headquartered in Atlanta.
                                    A-25

-------
     •    Projection of  synfuel  market:

               Oil shale  is  competitive  now  with  imported  oil.

               Demand  for  diesel  fuel  will  increase;  gasoline demand will
               decrease.   GM projects  that  20 percent  of its  fleet will  be
               dieselpowered by  1985  compared to  5-7  percent  now.

2.   Significant factors  that will  impact supply of synfuels:

     t    Great dependence on OPEC.

     •    Among the  synfuels that  will  be produced,  diesel  fuel  will be
          competing  with  other middle  distillates such as  jet fuel as the
          demand  for diesel  fuel  increases.

3.   Synfuel products compared to petroleum-based  products:

     •    For the most  part, the user  will  not identify any differences
          between petroleum products  and synfuels.  For example, the SUN
          Oil Toledo refinery has  produced  some gasoline derived from tar
          sand feedstock.   It is used  just  as regular gasoline is  used  no
          one knows  the  difference.

4.    Anticipated  modifications to  facilities or procedures  for utilization
     of synfuel products:

     •    In general,  suppliers  can  process  synfuel  feedstocks to  yield  any
          specified  product.   The  amount of  processing is  mostly a matter
          of economics.   This is DOE's feeling   fuels can  be made to
          specs.  But  GM  feels that  processors and users should  meet
          part-way for  optimum utilization  of synfuels.  If a producer is
          only making  a  product  to certain  specifications,  some  of the
          advantageous  properties  of  synthetics may  be neglected.   For
          example, for  the high  content  of  aromatics  present  in  coal
          liquids, one  may want  to develop  a higher  compression  engine for
          more efficient  operation.

     t    The balance  between additional processing  of synfuels  versus
          engine  modification is a matter that is being investigated by
          experimentation.   As a first step, GM will  look  at  a less refined
          or processed  synfuel product.   A  series of  tests  will  be
          scheduled  beginning with fuel  characterization   e.g.,
          aromaticity,  sulfur, volatility,  octane quality,  etc.   Next,
          tests of performance will  be made  in a  single cylinder engine.
          After these  initial  tests,  GM  will  begin to iterate with the
          supplier on  fuel  specifications   e.g., a  tighter spec on sulfur
          may be  requested.   At  the  same time, GM begins to look into
          possible engine  modifications  to  utilize fuel effectively.
          Eventually,  full  scale multi-cylinder tests are  conducted and
          actual  auto  engines are  tested.  Longer range testing  is required


                                    A-26

-------
          for  such  things  as  materials compatibility.   It is this whole
          system  approach  to  development  of synfuel  products that is
          requi red.

     •     GM  is willing  to look  at  less refined,  cheaper fuels but
          ultimately  EPA standards  will  determine whether or not a product
          can  be  used.   For example,  consider the fuel-bound nitrogen in
          shale oil.   Although  engine performance may  not be affected by a
          nitrogen  level yielding  emissions of 1.2 grams/mi., it may turn
          out  to  be too  costly  to  process the fuel  to  meet a standard of
          1.0  gram/mi.

     •     Although  we do not  know  the ultimate effect  on costs of refining
          and/or  engine  modifications, refining and  processing will
          probably  be the  primary  path to acceptable use of synfuels.  For
          example,  in the  case  of  diesel  particulates, although GM has done
          much work in  this area,  better  or improved processing is needed.
          More definitive  health effects  data would  help.

5.    Awareness of environmental  issues relating to utilization of synfuel
     products.

     •     GM  believes synfuels  use  constraints are economics, emissions,
          and  safety  but that economics as affected  by regulation on
          emissions and  safety  of  synfuel production and use is the primary
          constraint.   Specifically,  EPA  and other Federal regulations will
          be  the  prime driver in the  gasoline/automotive synfuel system.

     t     Issues  will  be generally  the same as for conventional fuel use.
          Some points:

               Arsenic  in  shale    if  it carries over to product used in
               cars,  it  will  poison the catalytic converter catalyst.
               Would  have  disposal  problems.

               Since  1974  EPA has  regulated additives  to unleaded gasoline.
               Synthetics  will  probably be impacted  by this regulation.

               Note that we can  make  highly aromatic fuels with no PNA's
               but  the combustion  of  this fuel will  yield PNA's   in the
               microgram/mi range.   Catalytic converters can remove PNA's
               but  how much can  be  tolerated?  PNA's will be an issue and
               the  burden  will  fall,  at least in  part, on the auto
               manufacturer.

               Note that the issue of ethyl alcohol  as an additive to
               unleaded  gasoline was  waived as a  result of benign neglect.
               But  evaporative  emissions  are high (10-25% vapor pressure
               increase) and should be addressed.
                                    A-27

-------
                           A  MAJOR  CHEMICAL COMPANY

                              September 17, 1980
         For Chemical  Company:

         For TRW:
Manager of Petrochemicals

J.  Cotter
J.  Cowles
1.  Synfuels Products  Market:

     •    Identification  of  major  synfuel  product suppliers:

          The most  probable  synthetic  feedstock used in the chemical
          industry  will  be medium-Btu  gas;*  they do not know whether they
          would make their own  gas  or  buy  it.   They would not use SNG under
          any circumstances.   Naphtha  and  gas  oil from shale  oil  refining
          should be good  cracking  feeds.   Later (in the 90's), LPG from
          coal  liquefaction,  together  with coal-derived naphtha and BTX
          will  become  available for chemical  feedstocks.  They do not
          understand why  anyone would  build a Fischer-Tropsch plant.

     •    Projected demand  for  synfuel  products:

          The growth rate of synfuels  as  chemical feedstocks  won't be all
          that  high.   They think less  than 50 percent of chemical
          feedstocks will  be synthetic by 2000, since the industry can't
          convert any  faster.   In  addition, the recent 6-10 percent growth
          rate  of the  chemical  industry is almost sure to slow down to 3-4
          percent by 1990, as  natural  products become more competitive with
          manufactured chemicals and  products.

2.   Significant factors  that  will  impact  conversion to synfuels  as
     feedstock:

     •    The availability  of existing feedstocks is a key issue.
          Tennessee Eastmen  probably  does  not  have any good options to
          their current  coal-to-syngas effort.  Both natural  gas  and resids
          {for  gasification)  could  be  interruptible feedstocks for them.
          They  (Chemical  Company)  are  in  much better shape on feedstock
          contracts.

     t    The competitive prices for  synthetic LPG, naphtha,  etc., are not
          yet determined,  but  both  price  and  forecasted availability will
          determine the  switch  to  other feedstocks.
*The advantages  for  oxygenated  chemicals look really good,
                                     A-28

-------
Synfuel  products compared to petroleum-based products:

•    Synthetic LPG will be just like it come out of the ground.   Acid
     gas purification of medium Btu gas will take out all the  trace
     contaminants, so that is will look like regular syngas.

•    Coal liquefaction products,  like naphthas, may be different,  and
     may contain PNA's and substituted phenols.

Anticipated modifications to facilities as procedures for utilization
of synfuel  products:

•    They are already working on  plant concepts (in R&D) that  would
     use synthetic feedstocks.   Their first synfuel-tailored process
     will be ready in the late 80's.

•    Synthetic methanol, as a fuel, could be used right now, if
     necessary.

Awareness of environmental issues relating to synfuel utilization  as a
feedstock:

•    Although some synfuels may have PNA's, etc., they face this
     situation right  now with resids from heavy liquid pyrolysis.
     These products are now sold  on the open market as a No. 6 fuel
     oil blend, since they have low sulfur content.  They do not  think
     any extra environmental controls are needed.  Good practice  right
     now dictates that these materials must be well contained, since
     they have to be  handled hot.

t    They are under the impression that neither synfuels nor their
     derived by-products would be subject to TSCA.  If they did have
     to  requalify any derived by-products, low-volume specialty
     chemicals might  be discarded from market consideration.

•    They feel that the extensive conversion which is characteristic
     of  chemical operations (as compared to refining) would also
     convert hazardous constituents found in the feedstocks.

They do  not see any justification for EPA to regulate synfuel
utilization.
                        DEPARTMENT OF NAVY

                        September 5, 1980


         For the Navy:                 Dr. A.  Roberts
                               A-29

-------
              For TRW:                       E.  M.  Bohn
                                             R.  S.  Iyer
                                             K.  R.  Lewis
1.   Synfuel products market:

     t    The Defense Production  Act  provides  for 3  billion  dollars  in
          purchase guarantees  for synfuels.  These incentives,  along with
          those of the  SFC,  are expected  to  stimulate  the  development of a
          commercial synfuels  industry  and to  assure fuel  supplies  for  DOD.
          DOD buys on the  open market  through  a  central  military
          procurement office.  All  purchases are made  according to military
          specification  (mil-specs).   It  is  expected that  synfuels will be
          procured in the  same manner   with suppliers identified  as the
          traditional fuel  suppliers.

2.   Significant factors  that will  impact  supply  of synfuels:

     0    Government incentives,  especially  price guarantees.

     •    Availability  is  a  national  security  issue.  Longer  term  depletion
          also is a  problem.   Equipment (ships,  planes)  being  designed  now
          to operate on  conventional  engine  technology.   The  need  is for
          traditional hydrocarbon fuels.   Alcohol, methane,  etc. cannot be
          used here.

3.   Synfuel products compared  to  petroleum based products:

     •    The characteristics  of  synfuels are  being  studied  now and  some
          differences have been  identified (e.g., high nitrogen content in
          shale-derived  fuel).  At  this point,  it is not known  if
          processing or  upgrading can  be  used  to meet  specifications.  Have
          only looked at one  source and one  process  (Paraho/SOHIO  test).

     §    The Navy  (as  also  other branches of  DOD) has a very active R&D
          program focused  on  characterizing  synfuels for end-users
          primarily  engines.   This  program includes  laboratory testing  to
          quantify test  fuel  chemical  and physical properties  and  to
          identify adverse effects  upon system performance.   Fleet  tests
          are planned as fuel  samples  become available.   Health, safety and
          environmental  concerns  will  also be  addressed.

4.    Anticipated modifications to facilities or  procedures  for utilization
     of synfuel products:

     •    For the next  10-20 years, current  equipment  (planes, ships) will
          continue in use.   The capital  investment in  these  equipment is
          large and  the  fuel must fit  the equipment.  Minor  modification,
          some retrofits are  possible.
                                     A-30

-------
     0     Note  that  the  buyer's  fuel  specifications have evolved over the
          years  around a  stable,  traditional  source of crude.   These specs
          are not  designed  to  pick-up problems among different crudes and
          certainly  not  for a  new product  like synfuel.   For example, in
          the case of Alaskan  crude,  had to hydrotreat more than other
          crudes and this  destroyed lubricity of product.   This produces a
          direct effect  on  fuel  pumps in aircraft engines.  Fuels will
          continue to be  modified.   The synthetics will  definitely pose a
          greater  problem.   For  example, none of the military specs account
          for nitrogen,  and it is known that  nitrogen causes gumming.  This
          has not  been a  problem  before.

     •     Toxicity  if  related  to  trace elements   might  be taken care of
          (eliminated) by drawing up  certain  specifications.

     •     From  utilization  point  of view,  the supplier must meet specs
          including  health  hazard specifications.  The engine manufacturers
          must  quality engines for  the military spec fuels.

     t     The Navy is interested  in all  synthetic fuels.  If they meet
          specs, will use.

     •     Oil shale  products appear more nearly able to contribute at this
          point    costs  are competitive and the industry is developing
          faster than others.   The  middle  distillate yield from oil shale
          is  good  also    jet and  diesel  fuel.

5.    Awareness  of  environmental  issues relating to utilization of synfuel
     products:

     •     Haven't  discovered any  significant  issues.  Work is under way and
          continuing.

     •     Have  not identified  any special  need for controls or procedures
          yet.

6.    Suggestions for EPA  approach to  controlling utilization of synfuel
     products:

     •     Use petroleum  as  a baseline when evaluating health effects of
          synfuels.  Should only  be concerned over results that show
          "worse"  than conventional products.  Then, look  at controls for
          these  cases.
                                    A-31

-------
                      ELECTRIC  POWER  RESEARCH  INSTITUTE

                             September  29,  1980
         For EPRI:           R.  Wol k              Director,  Advanced  Fossil
                                                  Power  Systems  Department

         For TRW:            J.  Cotter
1.   Synfuel Products Market:

     •    Projected demand  for  synfuel  products:

               Base load:   the  big  use  will  be medium-Btu  gas,  which  (with
               combined  cycle operations)  will be  competitive with
               pulverized coal-fired  boilers.  The Southern  California
               Edison  plant  at  Coolwater  is  going  ahead.

               Intermediate  load:   The  utilities can't  afford big
               expeditures  for  this  level;  liquid  products in combined
               cycle are  likely.

               Peaking:   probably  gas turbines with methanol or upgraded
               liquids.

               Petroleum  liquids will  dry up as  a  utility  fuel  as early as
               1990, and  certainly  by 1995.   Although We have a temporary
               excess  of  natural gas, that's going to disappear too.

     •    Identification  of  major  synfuel  product  suppliers

               Oil companies are most likely suppliers  of  liquids,  but
               utility consortiums  can't  be  ruled  out—the advantage  are
               substantial  for  utility  financing.

               Utilities  will probably  make  their  own medium-Btu gas;
               traditional  utility  suppliers like  CE, B&W, and  Westinghouse
               might be  potential  sources.

               Shale oil  liquids will  be  the first on line,  although  much
               of the  shale  oil product split will  be diesel fuels.

               Coal liquids  must be  on  line  by 1990 to  take  up  the
               petroleum  short  fall.

2.   Significant Factors  that will  impact  supply  of synfuels:

     •    Resource availability picture looks to be improving;  lignite
          yields are looking better  (from gasification  and liquefaction).


                                     A-32

-------
 •    Improved gasification and liquefaction technology should yield
      more  products from coal.

 •    Costs:   $6-7 million Btu  is a competitive price, coming from a
      $2-3  billion, 60,000-BPD  direct liquefaction plant.

Synfuel  products compared to petroleum-based products:

 •    Distilled shale oil products will  look most like petroleum
      products

 0    Coal  liquids (without upgrading) will have high sulfur, nitrogen,
      and carbon ratios.

 •    Compatibility is in question.

 Anticipated  modifications to facilities or procedures for utilization
 of synfuel  products:

 •    Shale oil resids can be used in turbines--EPRI demonstrated that
      at Long Island Lighting plant test.   Water injection moderates
      NO  emissions.
        A
 •    Utilities will use the lowest grade fuel that will  combust and
      meet  regulations; advanced turbine designs will be needed;
      Westinghouse has demonstrated that special combustor designs can
      burn  liquids down to 10%  H content.

 •    Resid coal liquids must be segregated; won't blend with petroleum
      oils.

 Awareness  of Environmental Issues Relating to Synfuel Utilization

 •    They  recognize that pipelining, barging, and tank car transport
      could be a problem; EPRI  has just issued a contract to Gulf to
      look  at potential emissions.

 •    Don't know real risks of  handling these materials at a power
      plant.

 •    They  are not excited about SRC 1iquids--think that their S&N
      content is higher than they might expect from some other
      liquefaction processes.

           Liquid fuels will certainly need some form of combustion
           modification; they did staged combustion with the SRC II
           test at Con Ed.

           No. 6 type fuels may require ESP use.
                                A-33

-------
               Distillate  products  may  be  favored  for  lower  NOX,  ash
               generation.

6.  Suggestions for EPA approach to controlling utilization of
    synfuel products:

               EPA  should  not  attempt to duplicate what  DOE  may do
               relative to  synfuel  utilization  regulation.
                                     A-34

-------
         APPENDIX B
COMMERCIAL COAL LIQUEFACTION
  AND GASIFICATION PROJECTS
             B-l

-------
TABLE B-l.  COMMERCIAL COAL LIQUEFACTION AND GASIFICATION PROJECTS

PROCESS
Sasol2
Lurgl Sasol1


Lurgl Sasol1

Lurgl Sasol2

Texaco



CO 1
i Texaco
ro
Koppers-
Totzek

Undecided

Mobil M-3
Gasoline

Lurgl1




PROJECT AND CONTRACTOR
Fluor and Crow Indians
East Texas Project,
EXXON Coal USA

South African Coal , 011
and Gas Corp. Ltd.
Texas Eastern &
Texas Gas
Texaco & Houston
Natural Gas



Methanol from Coal ,
Wentworth Bros.
Synthetic Fuel Lique-
faction Plant, W.R.
Grace & Co.
EXXON Wyoming1 Project,
EXXON Coal U.S.A.
Mobil Oil Co. & New
Zealand Liquid Fuels
Trust Board
Panhandle Eastern
Wyoming Project
Panhandle Eastern &
Pea body Coal Co.

MAJOR PRODUCTS
SNG Liquids
Med. Btu Gas &
Liquids

SNG, Liquids

SNG, Liquids

Methanol Fuel
Gas



Methanol

Methanol , Carbon
Dioxide

SNG, Methanol

Gasoline LPG


SNG




COMMERCIAL CAPACITY
65,000 BBL/D
Med. Btu Gas: 400
MMSCFD Liquids:
10,000 BBL/D
__

50,000 BOE Equivalent

2 plants producing
total of: Methanol
25,000 B/D Med. Btu
Gas 300 MMSCFD

7.5 MM gpd = 179,000
BBL/D
Methanol: 5,000 TPD
CO,: 6,000 TPD
c.
_ m

12,500 BBL/D


125 MMCFD Capacity




COST LOCATION
Montana
$2 billion Cherokee &
plus Rush Co.,
Texas
$2.8 billion South
Africa
Henderson,
Kentucky
$500 MM per Convent,
plant Loulslanna



$2.2 billion

« « — —


Glllete,
Wyoming
$500-650MM New Zealand


$1 Billion Douglas,
Wyoming



STATUS
„
Supply Demand
Studies of
Feasibility
Near Completion

Site 1s being
Negotiated
Feasibility
Studies



Planning and
Negotiation
__


Planning

Negotiation


Proposal



COMMERCIAL
START
..
„


1980

— ..


	



	

--


..

1984-1985


__




-------
                                                TABLE B-l.    (CONTINUED)

• PROCESS
Lurgl1


Lurgl2


Lurgt1


Lurgi1
(Tentative)
Lurgl1


_ Texaco4
CO
i
CO
Undecided



Undecided



PROJECT AND CONTRACTOR MAJOR PRODUCTS COMMERCIAL CAPACITY
Peoples Gas Dunn Co. SNG
Project, Natural Gas
Pipeline Co. of America
Rocky Mountain Energy SNG
Corporation

Great Plains Gasification SNG
Project

Mountain Fuel Supply SNG
Co., SNG Project
Burnham Coal Gasification SNG
Project, El Paso Natural
Gas Co. & Ruhrgas A.G.
Texaco & Transwestern SNG
Pipeline
•i
TENNECOl SNG from Coal SNG



SNG from Coal1 Texaco SNG
Inc. , Transwestern
250 MMSCFD


250 MMSCFD


137.5 MMCF/SD
(expandlble to
250 MMCF/D)
125 MMSCFD expandable
to 250 MMSCFD
Initial: 72 MMSCFD
Expanded: 288
MMSCFD
250 MMSCFSD


--



125 to 250 MMSCFSD


COST LOCATION
$1 Billion Dunn County,
No. Dakota

Southern Wyoming
Cherokee Coal
Reserves
$890 MM Mercer County,
No. Dakota

Emery, Utah

$42 Million New Mexico
for 72 MMSCFD
Plant
Buffalo,
Wyoming

Wlbaux,
Montana


Lake Desmet,
Wyoming
COMMERCIAL
STATUS START
— _ — _


Feasibility Late
Study 1980's

Negotiation


Start-up plan- 1990
ned for 1988
Negotiation
Stage

Feasibility
Study

Acquiring Coal
Reserves Nec-
essary to fuel
plant
Planning

HYGAS0
U-Gas1
Pi pel1ne Company

Montana Power Co., &
Montana-Dakota Utilities
A1r Force

Industrial Fuel Gas Demon-
stration Plant, Memphis
Light, Gas & Water
SNG
Medium Btu Gas
35-100 MMSCFSD
175 MMSCFD
I300-500MM
              Shelby County,  Detail  Design
              Tennessee
                                                                                                                        (continued)

-------
TABLE B-l.   (CONTINUED)

PROCESS
Texaco1


Texaco'


Shell -Koppers


Undecided


Undecided
Undecided

HYGAS1

Texaco1




Texaco1
(Tentative)



PROJECT AND CONTRACTOR
CBA5CO Services


Chemicals from Coal
Tennessee Eastman
Company
--


Low/Med, Dtu Gas fop
Multl -Company Steel
Complex
Columbia1 Coat Gasification
DeSota Countyl Mississippi
Coal Project
KEN-TEX Project, Texas
Gas Transmission Corp,
m w




Combined Cycle Coal
Gasification Energy
Centers


MAJpR._PRppUCT5
Synthesis Gas


Synthesis Gas for
Captive Use

. „


Low/Med But Gas


High Btu Gas
SNG

High Btu Gas

Ammonia




SNG, Fuel Gas,
Electrical Power


-' 	 '-I...... 	 . 	 .,. 	 .. 	 - 	 , 	 — ~— 	 ;___—-_-.
COMMEBCJAL CAPACITY. COST LOCATION
Louhf/nirui


Kfngsport,
Tonnessee

1,000 TPI) Coal Food -- Netherlands


Northern
Indiana

Illinois
.. . - .-

ZSO MMSCFD -• Illinois
Basin
1200 TPD $518 MM Baskett,
Kentucky



2 plants each producing: $116 Million Cameron,
SNG! 33 MMSCFD; Fuol Missouri
Gas! 42 MMSCFD; Power
300 MW

STATUS
Preliminary
engineering
Design
w-


Demonstrate
Plant Under
Design
Planning


Planning
Feaslbllty
Study
Planning

Detailed
Design



Construction
scheduled
for mid- 1981

COMMERCIAL
START
* •


1963


ri


..


** •
..

..

Results of Demo
Plant Testing
could have major
Impact on commer
dal start
1964



                                                     (continued)

-------
                                                           TABLE  B-l.   (CONTINUED)

PRQCXSS
9
Texaco

Texaco7


PROJECT AND CONTRACTOR
Central Maine Power
Company
Texaco A Southern
California Edison

MAJOR PRODUCTS
Electric Power

Electric Power


COMMERCIAL CAPACITY COST
-18,000 KW

90 MW 1000 TPD $300 MW
Coal

LOCATION
n •

Gar stow
California

STATUS
Planning

Preliminary
Design
COMMERCIAL
START
1987

1983

00
en
1,  Caroerpa Synthetic Fuels  Report, The Pace Company Consultants and Engineers, March 19QQ.
2,  Synfuels, McGraw-Hill, May  0, 1900,
3,  D,  J,  Deutseh, A B1o Boost  for Gasoline from Metnanol. Chemical  Engineering, pp.  13-15, 1/7/80,
4,  SynfueU, November 9, 1975,
5,  Synfuels, April 1, 1980,
6,  Synfuels, December 7, 1979,
7,  Synfuels, January 1, 1980,

-------
            APPENDIX  C
     COOPERATIVE AGREEMENTS AND
FEASIBILITY STUDY GRANTS FOR SYNFUELS
               C-l

-------
                                                           COOPERATIVE AGREEMENTS
               TECHNOLOGY
                               REQUESTED  FROM DOE
DESCRIPTION/SITE
               Coal Liquids

               Texas Eastern Synfuels
                               $24,300,000
o
 i
ro
High-Btu Gas

Great Plains
Gasification
Associates
                                              $22,000,000
Texas Eastern Synfuels proposes to construct a coal
liquefaction facility that will produce the equi-
valent of 56,000 barrels of oil per day.   Texas
Eastern Synfuels is a joint venture of Texas Eastern
Corporation and Texas Gas Transmission Corporation.
The proposed project is a Fischer Tropsch plant--
like the SASOL facility in South Africa—that would
convert approximately 28,000 tons per day of coal
into a mixture of transportation fuels, synthetic
natural gas (SNG), and chemicals.  Approximately
44 percent of the output is SNG {145 mmSCF/D); about
30 percent is transportation fuel.  The test chemicals
site is near Hendersen, Kentucky.
The project will use a Lurgi  pressurized,  fixed-
bed gasification process with Lurgi  methanization  re-
quiring 14,000 tons/day of lignite coal  to produce
137.5 mmCF/day of synthetic gas, 93 tons/day of
ammonia and 85 tons/day of sulfur.  The  facility will
be sited in the Beulah Hazen  area of Mercer County,
North Dakota and has a total  capital requirement of
$1.5 billion.
                Wycoal Gas
                               $13,155,000
Wycoal plans to construct a facility using Lurgi and
Texaco gasification units to process 16,000 tons of
sub-bituminous coal daily to produce high-Btu gas.
All  liquid by-products will also be gasified.  The
facility  is to be  located in Douglas, Uyoming.  The
proposed  work will involve developing a definitive
basis for plant design,estimating costs, securing
permits and approvals, obtaining financing, and
identifying long-lead delivery items.  There is a
market for the SNG via pipeline  system,  owned  by
the  participants,  to the midwest.  The project
would produce the  equivalent of 51,000 barrels of
oil  per day.

-------
                                               FEASIBILITY STUDY  GRANTS
     TECHNOLOGY
REQUESTED FROM DOE
                                                                            DESCRIPTION/SITE
o
i
GO
     Coal  Liquids

     Cook  Inlet Region
     Anchorage, Alaska  99509
     W.  R.  Grace
     Denver,  Colorado 80223
     Clark Oil  & Refining
     Milwaukee, Wisconsin  53227
$3,900,000
$  786,477
$4,000,000
     Houston Natural  Gas/Texaco
     Houston, Texas  77001
     AMAX,  Inc.
     Grenwich,  Connecticut
     Dakota  Company
     Bismark,  North Dakota
     58501
$3,260,000
$2,190,000
$4,000,000
Feasibility study of producing 54,000 barrels per
day of methanol from low sulfur coal using Winkler
gasifier and ICI methanol  synthesis.
Site:  West side of Cook Inlet, Alaska

Stage III of a feasibility study of a coal sourced
methanol plant using a Koppers-Totzek gasifier.
Site:  Moffat County, NW Colorado

Feasibility study of producing synthesis gas from
coal, steam, oxygen, and methanol from synthesis
gas using a Koppers-Totzek gasifier, ICI, and the
Mobil-M process.
Site:  South Illinois

Fourteen-month feasibility study of producing fuel
grade methanol from coal using Ziegler coal deposits.
Site:  Covent, Louisiana

Feasibility study of a coal-to-methanol plant pro-
ducing 14,910 barrels per day using Koppers or Lurgi
gasifiers.
Site:  Duluth, Minnesota

Feasibility study for constructing an 85,000-barrel/
day coal-to-methanol plant using Lurgi gasifier and
Lurgi methanol synthesis.
Site:  Dunn, North Dakota
                                                                                                    (continued)

-------
                                            FEASIBILITY STUDY  GRANTS (CONTINUED)
     TECHNOLOGY
REQUESTED FROM DOE
DESCRIPTION/SITE
o
     Republic of Texas Coal         $  808,781
     Co. and Mitchell Energy
     Corporation
     Houston, Texas 77002
     Hampshire Energy               $4,000,000
     Milwaukee, Wisconsin
      High-Btu Gas

      Crow  Tribe  of  Indians          $2,729,393
      Washington, D.C.  20036
      Texas  Eastern  Synfuels,  Inc.   $3,018,000
      Houston,  Texas 77001
      Low/Medium-Btu  Gas

      Florida  Power                   $1,380,796
      St.  Petersburg, Florida
      33733

      General  Refractories            $   922,555
      Bala Cynwyd, PA 19004
      Central  Maine Power            $3,624,558
      Augusta, Maine 04336
                            Feasibility  study  of gasification of  in-situ deep
                            Texas  lignite  and  conversion of  remaining medium-
                            Btu  synthesis  gas  to methanol and high octane
                            gasoline.
                            Site:   Texas Gulf  Coast

                            Ten-month  feasibility study of converting 15,000
                            tons/day of  coal to 20,000 barrels/day of gasoline,
                            Site:   Gillette, Wyoming
                            Nine-month  feasibility study, high-Btu gas  (Lurgi
                            process  - SNG)  at  Crow Reservation, Montana.
                            Site:   East of  Billings, Montana.

                            Nine-month  feasibility study, high-Btu gas  (Lurgi
                            process  - SNG,  methanol) at San Juan County, New
                            Mexico.
                            Site:   East of  Navajo Indian Reservation
                            Twelve-month  feasibility study of medium-Btu gas
                            combined  cycle.
                            Site:   Pinellas  County, Florida

                            Nine-month  feasibility study of low-Btu industrial
                            fuel  gas.
                            Site:   Florence,  Kentucky

                            Fifteen-month feasibility study of combined cycle,
                            medium-Btu  gas at Sears Island, ME.  (Process:
                            Texaco  gasifier)
                            Site:   Waldo  County, Maine

-------
                                           FEASIBILITY STUDY GRANTS  (CONTINUED)
          TECHNOLOGY
                               REQUESTED FROM DOE
            DESCRIPTION/SITE
o
i
en
         EG&G                           $4,000,000
         Wesley, Massachusetts
         02181
          Philadelphia Gas Works         $1,168,108
          Philadelphia, PA 19102
          Celanese Corp.                 Mo Cost
          Dallas, Texas 75247
Union Carbide/Linde            $3,945,676
Division
Tonawanda, New York 14150

Oil Shale

Gary Energy Corp.               $3,009,399
Fruita, Colorado  81521
          Transco  Energy Co.             $3,778,267
          Houston, Texas
          Tar  Sands

          Natomas  Energy  Co.             $  357,511
          San  Francisco,
          California  94108

          Standard Oil of Indiana        $0
          Chicago, Illinois  60601
Feasibility study for a medium-Btu gasification
facility producing combined cycle  power and methanol
Choice of process technologies  between  Koppers-
Totzek or slagging Lurgi.
Site:  Fall River, Massachusetts

Twelve-month feasibility study  of  medium-Btu gas
(Process:  TRD).
Site:  Philadelphia, Pennsylvania

Feasibility study to determine  the technical and
economic viability of developing  a carbon monoxide
and hydrogen syngas from either a  high-Btu coal
or a Texas lignite.
Site:  Near Bishop, Texas

Eighteen-month feasibility study  of low-/medium-
Btu gas.
Site:  Texas City, Houston, Texas
Feasibility study for upgrading crude oil  shale to
gasoline jet fuels, DFI1, and residual using UOP
hydro-processing and hydro-cracking.
Site:  Fruita, Colorado

Eighteen-month feasibility of 2000-BPD (or larger)
module of a 50,000-BPD plant.
Site:  Lewis County, Kentucky
                                                          Eight-month  feasibility  study of  extracting 20,000
                                                          barrels/day  of oil  from  domestic  tar  sands-bitumen,
                                                          Site:   Site  may be  in  Utah  or California

                                                          Feasibility  study of a 50,000-barrel/day  tar  sands
                                                          Bitumen facility.
                                                          Site:   Sunnyside, Utah
                                                                                                        (continued)

-------
                                            FEASIBILITY STUDY  GRANTS  (CONTINUED)
     TECHNOLOGY
                               REQUESTED FROM DOE
          DESCRIPTION/SITE
o
i
CTt
     Unconventional  Gas

     Acruex  Corporation              $   440,261
     Mt.  View,  California  94042
     Seneca  Indian  Nation            $   896,638
     Salamanca,  New York  14779
Republic of Texas Coal
Co. and Mitchell Energy
Corp.
Houston, Texas 77002

Mountain Fuel Supply Co.       $1,810,762
Salt Lake City, Utah 84139
     Peat

     Minnesota Gas Co.               $3,996,554
     Minneapolis, Minnesota
     55042

     Shale Liquid Upgrading

     Union Oil Energy Mining        $4,000,000
     Los Angeles, CA  90017
Feasibility study of anaerobic digestion of sewer
water to obtain methane.
Site:  Possibly Oakland, California

Feasibility study of the recovery of natural gas
from Devonian shales - vertical wells.  Methane
from Devonian shale.
Site:  Salamanca, New York

Feasibility study of gasification, in-situ deep
Texas lignite, and conversion of remaining medium-
Btu synthesis gas to methanol and high octane gasoline.
Site:  Calvert, Robertson County, Texas
                                                              Two-year feasibility study
                                                              gas  in the Pinedale field.
                                                              and  condensate.
                                                              Site:  Sublette County, Wyoming
                           of unconventional  natural
                            Product is natural  gas
                                                          Nineteen-month  feasibility  study  for the  production
                                                          of high-Btu  substitute  natural  gas  from peat.
                                                          Site:   Minnesota
                                                          Feasibility study  for  operation  of a  10,000 BPD up-
                                                          grading  plant  producing  premium  quality syncrude.
                                                          Site:  Grand Valley, Colorado
                                                                                                    (continued)

-------
TECHNOLOGY
 REQUESTED FROM DOE
Unconventional Gas

U.S. Steel Corporation
$  600,000
Coal Oil Mixture
Banklich Corporation
$  989,500
U.S. Steel  Corporation proposes to build a collec-
tion and compression system to capture methane from
a mine pre-drainage program.  The gas, currently
being vented, will  be injected into an interstate
pipeline system for sale.   The project will  produce
the equivalent of 200 barrels of oil  per day.   Site
is Oak Grove, Alabama.
Banklick Corporation proposes to design and construct
A Coal Mining Mixture (COM) preparation plant on a
site on Blount Island, Florida owned by the Jackson-
ville Port Authority, and to market the products.
In this proposal, the approach is to first grind
the coal, then mix it with oil and pulverize the
result, and, finally, to mix the product more
thoroughly using ultrasonic agitators.  A COM prep-
plant is relatively simple and, in addition to the
above equipment, consists of coal storage and
handling equipment (including a coal pile), oil
and COM piping and storage hardware, and associated
hardware.  Coal would be delivered by rail.  The
project will produce 6,000 barrels per day.

-------
                                 APPENDIX D
                  EXISTING MARKETING SYSTEM FOR PETROLEUM
                          AND NATURAL GAS PRODUCTS
                             TABLE  OF  CONTENTS
D.I   PETROLEUM PRODUCT DISTRIBUTION AND USE PATTERN 	   D-4

      D.I.I  Product Transportation Systems  	   D-4

             D.I.1.1  Product Pipelines	D-7
             D.I.1.2  Waterborne Transportation	D-13
             D.I.1.3  Truck Transportation 	   D-13
             D.I.1.4  Railroads  	   D-16

      D.I.2  Storage	D-18
      D.I.3  End Uses	D-20

D.2   NATURAL GAS  DISTRIBUTION AND USE PATTERN	D-20

      D.2.1  Sources of Natural Gas	D-22
      D.2.2  Gas Supply System	D-22

             D.2.2.1  Gathering, Transmission, and Distribution  .  .   D-?2
             D.2.2.2  Gas Flow	D 26
             D.2.2.3  Storage  	   D-28

      D.2.3  Natural Gas End Uses	D-28

             D.2.3.1	D-31

D.3   PETROCHEMICALS	D-31

      D.3.1  Background	D-32
      D.3.2  Major Petrochemicals  	   D-36

             D.3.2.1  Sources  	   D-36
             D.3.2.2  Transportation  	   D-39
             D.3.2.3  Benzene Storage  	   D-41
                                    D-l

-------
      0.3.3  Benzene End Use
D-42
D.4   SOURCES OF POLLUTANT  EMISSIONS  TO  THE  ENVIRONMENT
      FROM CONVENTIONAL  FUELS  TRANSORT AND  STORAGE  .........   D-45

      D.4.1  Transportation  Modes  Used for  Conventional  Fuels   .  .  .   D-45

             D.4. 1.1   Pipelines   ..................   D-45
             D.4. 1.2   Water  Carriers  ................   D-47
             D.4. 1.3   Tanker Trucks   ................   D-49
             D.4. 1.4   Railroads   ..................   0-59

      D.4. 2  Product  Storage ....................   D-50

      REFERENCES ..........................   D-51
                                    FIGURES
Number                                                                 Page

 D-l     Petroleum  Flow Diagram,  1978  ...............   D-5

 D-2     1978  Crude  Oil  Movement  ..................   D-b

 D-3     Petroleum  Refineries  in  the United States
         and Puerto  Rico ......................   D-8

 D-4     1974  Refined  Petroleum Products:   Consumption
         and Refinery  Capacity by States ..............   D-9

 D-5     Petroleum  Administration for Defense Districts  ......   D-10

 D-6     Petroleum  Products  Pipeline Capacities (Thousands
         of Barrels  Daily,  as  of  December  31, 1978)  ........   D-ll

 D-7     Commercially  Navigable Waterways  of
         the United  States  .....................   D-P
 D-8     Refined  Petroleum Products Supplied by Type
         and  End  Use  Sectors  ....................  D-21

 D-9     Major  Natural  Gas Pipelines (March 31, 1980)  .......  D-25

 D-10    National  Gas Flow Patterns  ................  D-27

 D-ll    Location  of  Underground Gas Storage ............  D~"

 D-12    The  U.S.  Petrochemical  Industry   1978  ..........  D-35

 D-13    The  Flow  of  Petrochemicals to the Motor
         Vehicles  Industry .....................  D"37


                                     D-2

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                                   TABLES

Number                                                                Page

 D-l     Petroleum Product Transportation Methods  	  D-12

 D-2     Interdistrict Movements of Petroleum Products
         by Tankers and Barges for First Quarter 1978	D-l5

 D-3     Tank Car Movements	D-l 7

 D-4     Nationwide Inventory and Storage Capacities 	  D-13

 D-5     Storage Capacity by PAD District	D-l9

 D-6     Marketed Production of U.S.  Natural  Gas   1979	D-23

 D-7     Gas Utility Industry Miles of Pipeline and Main
         by Type and by Region   1979	D-26

 D-8     U.S. Natural  Gas Storage Volumes and Capacities 	  D-3C

 D-9     U.S. Natural  Gas Consumption   1978	D-32

 D-10    Gas Utility Large Volume Sales, by Type of
         Industry and  by Division, 1978	D-33

 D-ll    Primary Petrochemicals Ranked by Volume
         of Production	D-34

 D-12    U.S. Production of Selected Petrochemicals
         Ranked by Vol ume	D-38

 D-13    Regional/State or Territory Production
         of Benzene   1979	D-40

 D-14    U.S. Shipment of Crude Products from Coal and
         Petroleum Tars - Total Tons Shipped by
         Transportation Mode in 1972	D-42

 D-15    Benzene Consumption in the U.S. by EPA Regions   1979 .  .  .  D-43

 D-16    U.S. Consumption of Benzene and its Major
         Derivatives by Selected EPA Regions 	  D-44

 D-17    Hydrocarbon Emission Factors for Petroleum
         Liquid Transportation Sources	D- 46

 D-18    Liquid Pipeline Accident Summary   1979  	  D-48
                                    D-3

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     This appendix  assesses  the  marketing and transporting systems in
commerce today for  petroleum and natural  gas products, petrochemical  pro-
ducts, and by-products.   It  identifies the current market infrastructure in
relation to crude product  transport,  storage, refining, and upgrading;
product and by-product  distribution and storage; product and by-product
consumption; and the  environmental  impacts resulting from the combustion of
these products and  by-products.

     The purpose of this  appendix is  to identify the current marketplace
and shipment and storage  systems that ultimately will be used for the mix
of conventional and synfuel-derived  products and by-products.  Current
methods used by industries for distribution, storage, and consumption of
these products are  assessed  as completely as possible where adequate
resource data were  documented and/or  obtained from the respective indus-
tries.  This assessment  provided the  background for the assessment of the
likely shale oil- and coal-derived  products and by-products use patterns
presented in Sections 3  and  4.

D.I  PETROLEUM PRODUCT  DISTRIBUTION AND USE PATTERN

     This section discusses  the following broad categories of petroleum
products:  gasoline,  middle  distillates (e.g., jet fuel, kerosene, distil-
late fuel oil), residual  fuel oil,  and liquefied petroleum gases  (LPG).

     Figure D-l is  an overview of the "petroleum flow'1 from the crude stage
to the refinery and finally to the  consuming sector.  It shows that the
current domestic crude  oil supply is  significantly augmented by imports,
and supplemented somewhat  by natural  gas plant liquids (NGPL) input, other
hydrocarbon input,  and  processing gain.  Plant condensate imports and
unfinished oil imports  also  contribute to total refinery input.   Total
refinery output plus  NGPL  direct use  and refined product imports  constitute
the total refined products supplied  (Reference 1).

D.I.I  Product Transportation Systems

     Petroleum moves  from  production  areas to refining centers and finally
to marketing areas  and  consumers through a complex network of pipelines,
barges, tankers, tank cars,  and tank  trucks.  Essentially all crude oil
must be refined before  end use.   Crude petroleum normally is transported to
refineries as directly and cheaply as possible.  Pipelines and ocean car-
riers constitute the  bulk  of crude  petroleum transport.  Although somewhat
limited with respect  to route flexibility, cost efficiency makes  them the
most attractive methods  (Reference  2).  A fairly extensive crude  pipeline
system exists in the  U.S., but some coastal  refinery facilities are not
accessible to the primary  crude pipelines.   These facilities are  serviced
by other modes of transportation, e.g., trucks, water carriers, and rail.
Figure D-2 shows the  primary crude  oil movement pipelines in the  U.S.
today.

     Pipelines alone  transport more than 70  percent of the crude  oil
transported in the  U.S.  today (Reference 3).  Primarily they are  servicing


                                     D-4

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o
I
CJ1
/ »* «*
*f /
° /
*/ //
/ /«
^ ^
v ^


 Figure  D-l
                                   Petroleum Flow Diagram,  1973 (tVillion Barrels Per Day)

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Figure    D-2.      197Q   Crude   Oil    Movement

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only the South Central, parts of the Southeastern, Mountain, Great  Lakes,
and the upper Great Lakes regions in the U.S.  However, petroleum product
pipelines are dispersed throughout the refinery areas to accommodate  petro-
leum refineries as much as possible.  Petroleum refineries are concentrated
in practically all states in the South Central, Southeastern, Northeastern,
Great Lakes, Western, and Northwestern regions.  Figure D-3 illustrates
petroleum refinery locations in the United States and their relative  capa-
cities (Reference 4).  These refineries are expected to handle a mix  of
input consisting of syncrude.  A complete listing of refineries  in  each
state is documented in Oil and Gas Journal, March 24, 1980.

     If the crude oil movement shown in Figure D-2 is superimposed  over  the
refinery locations, certain fairly obvious trends appear.  Coastal  areas
that also are producing areas handle the bulk of refinery activity.   The
Gulf coast area is the receiving point for the bulk of foreign imports and
significant amounts of local crude.  Although much of the crude  is  refined
in the Gulf Coast area, large amounts are pipelined to the Great Lakes
industrial area for refining.  Some crude from Canada is also piped down
into the Great Lakes  Region.  California serves as a refining center  for
Alaskan crude shipped by tanker, and for local crude pipelines in the west.
East coast refineries receive crude almost exclusively from ocean-going
tankers.  As is most  apparent in the east, the end-use consumption  require-
ments of many states  are much greater than their refinery capacity.   Figure
D-4 illustrates this  imbalance.

     Consequently, refined petroleum products generally flow to  the
consumers in the north and east via pipelines, water carriers, motor
carriers, and railroads.

     Much of the data regarding the movement of crude and petroleum
products is tabulated according to Petroleum Adminstration for Defense
(PAD) Districts.  Figure D-5 shows this geographic breakdown.

D.I.1.1  Product Pipelines

     Most product pipelines are common carriers and, as such, are subject
to Interstate Commerce Commission (ICC) and Federal Energy Regulatory
Commission (FERC) regulations.  Anyone meeting the pipeline's tariffs and
regulations and requesting shipment should be eligible for service, con-
tingent upon scheduling.  Normal pipeline specifications may include  pour
point, viscosity, and minimum shipment size.  These specifications  help
facilitate an optimum flow  rate and minimum interface contamination
(Reference 5,6).  Petroleum product pipelines carry mostly light products--
gasoline, heating and fuel oils, LPG, kerosene, and jet  fuel (Reference  3).
They are dispersed throughout regions in the U.S. with primary concentra-
tion east of the Mississippi to accommodate petroleum refineries and  major
end use consumers (see Figure D-6).  These product pipelines are expected
to service the synfuel industries discussed in Section 3.

     An aggregate volume breakdown of petroleum products transported  in  the
United States gives pipelines about a 37 percent share.  This share is


                                     D-7

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o
r
                                                                                                                  Petroleum
                                                                                                                  ReflnerlM
                                                                                                               tarmtt p«r cibniti d*y

                                                                                                                   250,000
                                                                                                                  • or lou
                                                                                                                   capacity

                                                                                                                fj More than
                                                                                                                -••250,000
                                                                                                                   capacity
                              Figure  D-3.   Petroleum Refineries  in the United  States and Puerto  Rico
                                              (As o-f  January  1,  1978)

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Figure D-4.
1974 Refined Petroleum Products:
Capacity by States
Consumption and Refinery

-------
o
I
                         Figure  D-5.   Petroleum Administration  For  Defense  Districts

-------
o
I
                                                                                                        •FOB PUMPING n FUEL OIL
                                                                                                       NATIONAL PETROLEUM COUNCIL



                                                                                                              UtttMP


                                                                                                         
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roughly equal to trucks  (37 percent), which  are  used  for  shorter  hauls and
heavy products.  A surmiary of the  "tons  carried"  and  "percent  of  total"
transported though pipelines  in  1950, 1960,  1970,  and 1977  is  shown  in
Table D-l.

            TABLE D-l.   PETROLEUM  PRODUCT  TRANSPORTATION  METHODS


Year
Pi pel

Tons3
ines
Percent
of total
Water

Tons

a
Carriers
Percent
of total
Trucks
Rail
Percent
a
Tons
of
total
Tons3
road
Percent
of total
Total

Tonsa
1950
1960
1970
1977K
52.7
140.0
333.1
526.0
12.75
21.31
31.12
36.56
185.
244.
286.
361.
2
2
4
7
44.
37.
26.
25.
85
17
75
14
130.8
242.5
425.2
524.6
31.66
36.93
39.72
36.46
44.4
30.2
25.8
26.4
10.74
4.59
2.41
1.84
413.1
656.9
1,070.5
1,438.7

 Tons rounded to  nearest million.
p
 preliminary.

Source:  Adapted  from  Association  of  Oil  Pipelines,  Shifts  in Petroleum
Transportation, 1979,  Table  3,  and  previous  issues.
      In  comparing the quantities of petroleum product movement by pipeline
 between  PADD's,  the Gulf Coast (PADD 3) far surpasses all other PAD dis-
 tricts  as the point of origin of interdistrict product movement.  About
 2.646 MMBPD of product originates in this district and is transported by
 pipeline to three other PADD's.  PADD's 1, 2, and 5 receive 1.944 MMBPD,
 0.655 MMBPD,  and 0.047 MMBPD, respectively (Reference 7).  The East Coast
 is  the  destination of nearly two-thirds of the total interdistrict
 movement, or 3.174 MMBPD.   As synfuel  products become available, some of
 this  product  movement is likely to come from coal-derived liquid products
 produced in Region III after 1987.

      PAD District 3 surpasses all other districts in shipment of gasoline
 (1337 MBPD),  distillate fuel oil  (640 MBPD), jet fuel (221 MBPD), natural
 gas  liquids (192 MBPD), and kerosene (640 MBPD)  (Reference 8).

      PAD District 1 receives the greatest quantity of most of the products
 shipped  from PADD's 2 and 3; gasoline (1117 MBPD), distillate fuel oil  (543
 MBPD), jet  fuel  (171 MBPD), natural  gas liquids  (130 MBPD), and kerosene
 (29 MBPD) (Reference 8).  PAD District 2 receives the largest share of
 petroleum products through pipelines:  gasoline (392 MBPD), distillate fuel
 oil  (205 MBPD),  jet fuel (52 MBPD), natural gas  liquids  (158 MBPD), and
 kerosene (8 MBPD)  (Reference 8).
                                     D-12

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0.1.1.2  Waterborne Transportation

    Waterborne transportation  is typically broken down into two types:
domestic traffic and  foreign traffic.   Domestic  traffic includes all move-
ment between points in the  U.S.  and  Puerto Rico, generally along coastal
routes and within the 25,000 miles of  commercially navigable inland
waterways (Reference  9).  Figure D-7 illustrates the extent of our  river,
canal, and intracoastal waterways, and channel  network.  The commercial
waterway system stretches up into the  Great Lakes and covers the entire
East Coast.   Recently there has  been some significant waterborne movement
of crude from Alaska  along  the  West  Coast (see Figure D-2).  Domestic
movement is primarily by barge  (moved  by towboat or tugboat), and lake and
coastal tanker.  Tank barges are second only to  pipeline in the volume of
petroleum moved (Table D-l).

    Barges generally range in  capacity from 1,000 to 3,000 tons, with tugs
and towboats moving flotillas  of up  to 200,000 tons.  Recent rapid  growth
of inland waterborne  transportation  has resulted in significant equipment
investment and, consequently,  a  relatively modern fleet.

    Ocean-going barges are becoming more popular, and their use is
anticipated to  increase in  the  future.  These large barges function much
like self-propelled coastal tankers  and are likewise constrained by U.S.
port size limitations.

    Domestic refineries were  designed to maximize production of gasoline
and other high-priced products.  Consequently, the U.S. is forced to  import
residual fuel oil  in  large  quantities via ocean  tanker  (Reference 9).  The
imports currently  being transported  are expected to be displaced to some
extent by synfuels.   Generally,  pipelines do not carry heavy products  such
as residuals.   Thus,  domestically,  barges and tankers often complement
rather than compete with pipelines  in moving heavier products (Reference
9).

    Waterborne movements  are  summarized in Table D-2.  For more detail
refer to the National Petroleum Council, Petroleum Storage and Transporta-
tion Capacities -  Waterborne,  Vol.  V, December, 1979 (Reference 9).   The
Gulf Coast apparently serves  as the  only significant point of origin  for
interdistrict waterborne petroleum product shipments, with the  East Coast
receiving the largest share (Reference 6).

    Gasoline  (50  percent), distillate  fuel oil   (23  percent), and  residual
fuel oil  (12 percent) constitute the  largest domestic  volume movements
(Reference 7).  However, when  foreign tanker  imports are  also included in
volume calculations,  residual  fuel  oil  is transported  in  the  largest
quantities followed  by  distillate  fuel  oil, crude oil,  and  other  products.

D.I.1.3  Truck  Transportation

    Trucks  interface with  many different  segments  of  the petroleum
industry.  Trucks  pick  up  crudes at the wellhead  for delivery to  gathering


                                    D-13

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                                                MINNEAPOLIS • ST. PAUL
                                                               Gulf Intracoastal Waterway
 CONTROLLING DEPTHS
mm 9 FEET OR MORE
....  UNDER 9 FEET
                                                                                                                 Atlantic
                                                                                                                 Intracoastal
                                                                                                                 Waterway
SOURCE: Adapted from Flntl Enylronmtnttl Impact St*t«m»r>t. Tit It XI; U.S. Department of Commerce. Maritime Administration. February 1979.

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             TABLE D-2.  INTERDISTRICT MOVEMENTS OF PETROLEUM PRODUCTS BY TANKERS AND BARGES
                         FOR FIRST QUARTER 1978 (IN THOUSAND BARRELS PER DAY - MBPD)
              Origin
                                                    Destination
East coast  Midcontinent  Gulf coast  Rocky Mts.  West coast
 (PADD-1)     (PADD-2)     (PADD-3)    (PADD-4)    (PADD-5)
                                               Total
i
en
East coast
  (PADD-1)

Midcont inent
  (PADD-2)

Gulf coast
  (PADD-3)

Rocky Mts.
  (PADD-4)
                            1,213
                175
                                      18
         1,406
             West coast
               (PADD-5)

                Total
 1,213
175
18
                                                                             1,408
             SOURCE—U.S.  Department of Energy,  1978 (March), Energy Data Reports.

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pipelines or directly  to  refineries.  Direct deliveries from refiners to
distributors are  often  made  by truck.   Widespread movement of products to
final consumers  is  facilitated by tank truck (all gasoline to service
stations is delivered  by  motor carrier).   And finally, truck transport can
provide  relief during  seasonal peak demand by supplementing product pipe-
line deliveries  (Reference 7).  In fact,  nearly all  oil products and LPG
are, at  some point,  moved by tank truck.   But this movement is difficult to
track and document  because the brevity of the hauls (generally 50 miles or
less) and the extent of our  highway system (Reference 2).

     Although tank  trucks are used extensively for short hauls, they have
only limited potential  for long-haul shipments.  Table D-l indicated that
truck transport  has  grown faster than  any other method of petroleum trans-
port.  Much of this  growth has been at the expense of the railroads, which
cannot compete with  the lower capital  requirements, scheduling, and route
flexibility inherent in the  trucking sector (Reference 2,7).  Truck adapt-
ability  has given motor carriers an estimated 37 percent of the petroleum
transporting  industry—essential ly equal to pipelines (37 percent as shown
in Table D-l).

     Thus, as synfuel  production develops, trucks are expected to be the
initial  mode of  product transport, especially in Region VIII.  Also, trucks
are expected to  play an increasing role in product movement for short hauls
and in areas where  pipeline  networks are unavailable.

     Unfortunately,  information on motor carriers is sketchy at best,
indicating an area  for further investigation.  Although the industry is
regulated by three  government agencies — the Interstate Commerce Commission,
the Bureau of Motor  Carrier  Safety, and the Materials Transportation Bureau
(the latter two  both within  DOT)--very little volume movement is tabulated.

     New tank trucks are  becoming progressively lighter and stronger with
the use  of aluminum  alloys,  stainless  steel and reinforced fiber glass.
Lighter  weight permits  greater payload size, with capacities reaching
11,000 gallons.

     Trucks using the  interstate highways must meet ICC specifications.  In
particular, LPG  carriers  are strictly  regulated because of the potential
for explosion.   The  statistics reported by the Energy  Information Admin-
stration and the  NGPLA indicate that trucks accounted for 3.4 and 3.5
percent  of the total  LPG  transported during 1977 and 1978.  Other modes of
transport during  this  time include:  pipeline-truck 90.6 and 90.3 percent,
pipeline-rail 4.6 and  4.4 percent, rail 0.9 and 1.5  percent, and tanker  or
barge 0.5 and 0.3 percent.   As older trucks are retired, lighter, larger
ones will be coming  into  service resulting in continued stability or growth
in product volume movements.

D.I.1.4  Railroads

     Rail transport  constitutes the smallest market share with only about I
percent  in 1977  (see Table D-l).   For  some products (petrochemicals and


                                     D-16

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liquefied petroleum gases) rail is still  a  practical  method of transpor-
ting.   Small  volumes (8,000 to 34,000 gallons)  can  be delivered by single
cars.   The unit train concept  (connected  tank  cars)  allows large-volume
movements.  But at present, the greatest  volume of  intermediate and long-
distance shipment is done by barge, tanker,  and pipeline, rather than rail.

    Railroad petroleum product shipments are  reported annually by the ICC.
Liquefied petroleum gases and  coal gases  are moved  in the greatest volumes
followed by residual fuel oil, asphalts,  and lubricating oils (Reference
2).

    A 1977 Interstate Commerce Commission  (ICC)  one  percent waybill sample
of tank car movements indicates a concentration of  car movement origins in
PAD Districts 1, 2, and 3.  This  data is  summarized  in Table D-3.  PADD 3
has the most  significant amount of traffic  with the  Texas-Louisiana
refining area carrying the highest percentage  of car  loads.  In PAD
Districts 4 and 5, where the rail system  is  not as  extensive as in the
east,  the number of car load shipments  is relatively  small (Reference 10).

                      TABLE D-3.  TANK CAR  MOVEMENTS

Origin
PADD 1
PADD 2
PADD 3
PADD 4
PADD 5
Number of
Carloads
2,414
3,234
4,524
437
610
Percentage of
Total Carloads
21.47
28.80
40.39
3.90
5.43
Tons
167,213
220,500
337,924
34,705
47,399

    A number of different types of  tank  cars  are equipped with heating
coils or insulation with capacities  ranging  up to 50,000 gallons or more.
Unpressurized, unheated cars are usually  used  for aviation fuels, gaso-
lines, and distillate fuel oils.   Pressurized  cars carry LPG such as pro-
pane and butane.  Cars with  heating  coils keep heavy fuels and asphalts
viscous.  Thus, due to design  specifications,  individual cars may require
costly alterations in order  to  be  used  to carry different products
(Reference 2).

    Tank cars must meet ICC and DOT specifications and their speed is
constrained by the condition of the  rails themselves.   Use of new materials
has resulted in weight reductions  and cars more suited to transporting
corrosive products (Reference  2).  Railroads may regain part of the petro-
leum transportation market if  the  unit-train concept (likened to a mini-
Pipeline on wheels) becomes  feasible and  competitive and as synfuel
products become available.
                                    D-17

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D.I.2  Storage

     Petroleum products  are  stored  at  many  points  in  the  distribution
network.  A tabulation of  stocks  could include  products  in  tank  cars at
railroad sidings,  pipeline  fill,  refinery  inventory,  and  bulk  terminal
storage.

     Inventory exists  within  the  system as  part of normal  or  anticipated
fluctuation in distribution  and  refining activities.   But  actual  tank
storage facilities  serve many additional purposes, including:

     •    Receiving  and  holding  shipments  that  are delivered  in  discrete
          parcels  but  used  continuously

     •    Accumulating products  in  anticipation of pipeline or waterborne
          movement

     •    Segregating  different  grades

     •    Holding  crude  and  products  during system maintenance

     f    Handling  unavoidable but  anticipated  events

     •    Meeting  safety and  design specifications (Reference  10).

     Table D-4 summarizes  the results of a  nationwide survey  examining
ivnentories and  storage  capacities.

          TABLE  D-4.   NATIONWIDE  INVENTORY  AND  STORAGE CAPACITIES
                             Primary  Distribution
                           System Minimum Operating                     a
                                  Inventory             Storage Capacity
     Product	(millions of barrels)     (millions in barrels)

     Crude Oil                        290                      462
     Gasoline                         210                      438
     Kerosene                          35                       90
     Distillate  Fuel  Oil              125                      365
     Residual  Fuel  Oil                 60                      162
Source:  National  Petroleum Council
 Storage Capacity:   Shell  capacity of tankage and unavailable inventory
                     outside of  tankage

     Somewhere  between  minimum  operating inventory and total  storage
capacity is the  actual  measure  of stocks.   With products such as gasoline
and jet fuel, storage  at  the refinery is nearly equal  to bulk terminal
                                     D-18

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storage (50,000 barrels).  Kerosene,  distillate  fuel  oil,  and residual fuel
oils are stored in greater quantities  at bulk  terminals.

    A detailed breakdown of  inventory and  storage capacity as of September
30, 1978 is documented in the  National  Petroleum Council,  Petroleum Storage
and Transportation Capacities-Inventory and Storage,  Vol.  II, December
1979. (Reference 12).Table D-5  summarizes the  storage capacity of each
PAD district (Reference  5).
               TABLE D-5.
          STORAGE CAPACITY BY PAD DISTRICT
             (000 BARRELS)3
    Product
PADD1
PADD2
PADD'
PADD
PADD'
Crude Oil
Gasoline
Kerosene
Distillate
Fuel Oil
Residual
Fuel Oil
3,941
122,593
31,066

144,193

54,727
92,296
132,598
20,618

100,342

17,096
160,077
113,138
21,537

61,775

23,576
21,010
16,361
1,721

6,253

2,450
51,588
49,007
14,425

20,634

24,152

 Storage Capacity   Shell
 outside of tankage
        capacity tankage plus  unavailable  inventory
    PADD 1 has very  little  crude  oil  storage,  probably because of the lack
of crude pipelines and  refining  facilities.   The industrial  Middle-Atlantic
region in PADD 1, however, has the greatest  product storage capacities
(356.5 MMBBL) compared  to other  PADDS.   PADD  2,  an area with much crude
movement and refining,  has extensive  crude  and  product storage (largest)
followed by PADD's 3  and 1 respectively.   The Texas Gulf Area of PADD 3
has, of course, the greatest  storage  capacity for crude and relatively high
product storage capacity (third  largest)  in  preparation for product
movement out of the area.  PADD  4  has relatively small storage capacities
to date because it is not industrialized  and  has only immature production
capability.  PADD 5 has moderate crude and  product storage capabilities.

    A detailed listing of refinery capacities  by state is documented in
Qjl and Gas Journal ,  March 24,  1980.   Further information on terminal
capacities may be obtained from  the Independent Liquid Terminals Associa-
tion's 1980 Directory,Bu1k of Liquid  Terminals and Storage Facilities.

    In addition to primary  storage facilites,  significant capacities exist
in the secondary/consumer storage  system.  Although it is difficult  to
determine, estimates  put storage in this  segment at 500 million barrels  for
Qasoline and distillate fuel  oil.   This is  about 60 percent of primary
                                    D-19

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storage  capacity.   Movements and concurrent shortages and surpluses between
these two  systems  warrant examination (Reference 5).

D.I.3  End Uses

     Petroleum products are used everyday in a number of ways.  The most
recognizable  form, gasoline, constitutes over one-third of all refined
products,  and supplies the largest petroleum end use sector--
transportation.

     In  1979, motor gasoline was supplied in the greatest aggregate volume
(7.03 MMBPD), followed by distillate fuel oil (3.30 MMBPD), residual fuel
oil (2.79  MMBPD),  jet fuel (1.07 MMBPD), and kerosene (0.18 MMBPD).  The
"other products"  category constitutes a large volume but includes over 2000
different  refined  products (Reference 1).

     These petroleum products flow into a number of different sectors
including  transporation,  electric utilities, industrial, and  residential-
commercial.   The  transportation sector is the greatest end use of refined
products (9.72 MMBPD) followed by industrial (3.65 MMBPD), residential-
commercial  (3.45  MMBPD),  and electric utilities (1.55 MMBPD)  (Reference 1).
In  this  sector synfuels are likely to displace products currently being
supplied by imports.  Likely target areas for synfuel products are Region
VIII during the  initial development with other regions, i.e., Region III,
another  likely target area as development moves toward the eastern part of
the U.S.   Figure  D-8 summarizes refined products and end users together for
1977-1979.   Although gasoline and jet fuel  account for the greatest
quantities consumed in the transportation sector, residual and distillate
fuel oils  also are consumed for transportation as well as the other sec-
tors.  Liquefied  gases are used in the residential-commercial sector as
well as  the industrial.  While varying amounts of "other products" are used
in  all sectors, the industrial sector consumes the largest quantities of
the varied product slate.

     A tabulation  of products and corresponding end users for each state is
documented in detail in the Energy Information Administration, State Energy
Data Report,  April  1980 (Reference 13).  The tabulation confirms the gen-
eral description  of petroleum product flow to end users, but may be used to
isolate  peculiarities in  particular states.

D.2  NATURAL  GAS  DISTRIBUTION AND USE PATTERN

     This  section  examines the U.S. natural gas system infrastructure.
Because  of the extensiveness of the U.S. natural gas system and the recent
legislative activities associated with synfuel development, the U.S.
natural  gas  system has been assured of a role in the development of
synthetic  fuels,  more specifically, the transmission and use of substitute
natural  gas  (SNG).

     Since little  is presently known concerning the hazards of SNG from
differing  gasification technologies, an assessment of potential areas of


                                     D-20

-------
o
I
        at
ffl
03

C
o


m
                                         Other


                                         Liquefied Gases


                                         Residual Fuel Oil


                                         Distillate Fuel Oil


                                         Jet Fuel


                                         Motor Gasoline
                                                     c
                                                     o

                                                     (0
                                                     C
                                                     o
                                                     a
                                                     w
                                                     c
                                                     CO
         c
         o


         1
         o
         a
         ca

         to
                                                  1  g

                                                  5  «
                                                  ®C
                                                  T3  E
                                                  55  E
                                                  (DO
                                                  oc o

                                                 w
                                                 3
 CO
'5
 k.


 E

 E
 o
O
•o
 c
 CO

"55

     
     a
                                                                «
(0
                                                                                     D

                                                                                     _o
                                                                                     *C


                                                                                     _«

                                                                                     LU
                           1977                          1978                        1979


           Source:  Energy Information Administration,  Annual  Report to  Congress,  1979.
              Figure D-8.   Refined Petroleum Products Supplied by  Type and End Use Sectors

-------
exposure is needed to  properly  monitor and  control  pollutants  at acceptable
levels.  Towards this  end,  this section examines  the  existing  U.S.  natural
gas system by assessing  the sources  of natural  gas, its distribution to
consumers, and  its end use  consumption pattern.

D.2.1  Sources  of Natural Gas

     Naturally  occurring gas,  which  is found in  porous and permeable
reservoirs beneath the earth's  surface, has been  the  mainstay  of U.S.
natural  gas production since its inception.  Historically, U.S.  natural gas
has been supplied from well-known,  generalized  areas  (see Figure D-9).  The
largest  production area  is  in  southern Louisiana  and  the Gulf  Coast area,
which  produced  more  than 36 percent  of U.S. domestic  gas in 1979.   Other
major  gas producing  fields  are  located in Texas,  Oklahoma, New Mexico, and
Kansas.  In total, these areas  are  responsible  for 90 percent  of the U.S.
natural  gas production  (see Table D-6).

D.2.2  Gas Supply System

D.2.2.1  Gathering,  Transmission, and Distribution

     Natural gas  is  normally purchased by gas pipeline companies from
production companies in  the gas fields.  The gas  pipeline companies then
transport the gas to the market area where it is  sold to distribution
companies which make deliveries to  the end-use  customers.  This system
consists of a gathering, transmission, and distribution network (see Table
D-7).

     The gathering segment  consists  of a grid of pipelines spreading
throughout the  gas producing fields.  This pipeline grid gathers gas from
the wells and/or  processing plants  and funnels  it into the main transmis-
sion line portion of the system through the use  of compressor  stations
where  needed.

     The main transmission  line portion of the  system usually  consists of a
single line, and  at  most five  parallel lines, with compressor  stations
every  40 to 130 miles.This  main transmission line spans the distance
between  the gas field  and the  market area  (see  Figure D-9).

     After reaching  the  market  area, the gas is  sold and delivered to
various  distribution companies, local utilities,  or industrial customers.
Often  the delivery points are  located directly on the main transmission
line,  but it is common  for  deliveries to be made through a lateral line
that branches out to the buyer's distribution system.
                                     D-22

-------
TABLE D-6.  MARKETED PRODUCTION OF U.S. NATURAL GAS    1979

Region
Region I






Region II


Region III






Region IV








Region V






Region VI






States Covered
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
Total
New Jersey
New York
Total
Delaware
District of Columbia
Maryland
Pennsylvania
Virginia
West Virginia
Total
Alabama
Florida
Georgia
Kentucky
Mississippi
North Carolina
South Carolina
Tennessee
T i ^
Total
111 inois
Indiana
Michigan
Minnesota
Ohio
Wisconsin
iota i
Arkansas
Louisiana
New Mexico
Oklahoma
Texas Total


Capacity
(Millions of ft3)
0
0
0
0
0
0
nr
0
10,460
10,460
0
0
80
89,810
8,049
149,590
247,529
56,037
47,169
0
59,635
81,269
0
9
258
244,377
982
179
127,251
0
97,261
0
225,673
101,931
7,064,958
1,177,955
1,732,719
6,904,389
16,981,952
(continued)
                            D-23

-------
                           TABLE  D-6.   (CONTINUED)
                                                           Capacity
Region States Covered
Region VII Iowa
Kansas
Missouri
Nebraska
Total
Region VIII Colorado
Montana
North Dakota
South Dakota
Utah
Wyoming
Total
Region IX Arizona
California
Hawa i i
Nevada
Total
Region X Alaska
Idaho
Oregon
Washington
Total
Total U.S.
(Millions of ft3)
0
765,039
20
2,731
767,790
184,866
45,845
28,566
0
59,434
323,313
642,024
235
304,985
0
0
305,220
183,982
0
0
0
183,982
19,609,000b

NOTE:    Marketed  production   Total  gas produced (repressuring, vented,
         flared);  Data  represent actual  1979 U.S. marketed total production
         broken  down  by 1977 production  percentages.

         Totals  may not equal  sums due to independent rounding.

Source:   Adapted  from  Gas Facts 1978, AGA,  1979; Monthly Energy Review^
          DOE/EIA  0035, February 1980.
                                     D-24

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o
I
ro
en
                                                                           AlJENERCY REGULATOR?'COMMESIO
                                Figure D-9.   Major Natural  Gas Pipelines (March  31, 1980)

-------
         TABLE D-7.  GAS  UTILITY  INDUSTRY MILES OF PIPELINE AND MAIN
                         BY  TYPE  AND  BY  REGION 19793'
Region
I
II
III
IV
V
VI
VII
VIII
IX
X
Total
U.S.
Total
26,632
62,842
95,329
130,605
210,518
227,683
88,105
49,408
96,673
25,281

1,013,076
Field and
Gathering
0
412
14,566
3,888
4,398
35,602
8,123
7,038
853
18

74,898
Transmission
Pipeline
1,644
5,021
20,813
39,791
39,841
86,141
33,290
15,560
14,152
4,394

260,647
Distribution
Main
24,988
57,409
59,950
86,926
166,279
105,940
46,692
26,810
81,667
20,869

677,530

  Excludes  service  pipe.   Data not adjusted to common diameter equivalent.
  Milage  shown  as  of  end  of year.

  Includes  6,000 miles  of underground storage pipe.

  Source:   American Gas Association, Gas Facts 1978, 1979, p.56.

D.2.2.2   Gas Flow

     Production  volumes and the gas supply system can be combined to show
the relative distribution of natural gas flow throughout the U.S.  Briefly,
large amounts of gas  from the major producing fields of Louisiana, Texas,
and Oklahoma are shipped  northward to the major markets of the Great Lakes
region and  northeastern U.S.   The  Great Lakes region is also supplied by
imports from Canada.  Major markets in California are supplied by gas
flowing westward from production fields in New Mexico and western Texas.
In addition, significant  gas volumes flow southward from Canada into
Washington, Oregon, and on into California (see Figure D-10).  Changes in
gas flow  patterns  in  response to synthetic natural  gas produced from coal
cannot be predicted because the actual locations of coal gasification
plants are  still uncertain.   Section 3.1.2, however, does discuss these
facilities  as being located where  they have access to the existing pipeline
network.  Therefore,  it is expected that the existing transmission system
will  be utilized through  spur pipeline connections to these gasification
plants.
                                     D-26

-------
o
I
ro
                                                                                                                   tUIIUUM Of VON riOW CAMCIT*


                                                                                                                   AVIMGI H" 0«ll» »IOWWO

                                                                                                                   VOIUM<»


                                                                                                                     0 KMI
                                                 Figure  D-10.   National  Gas  Flow Patterns

-------
D.2.2.3  Storage

     Underground  gas  storage is  a principal  factor in gas operations.
Storage  involves  transporting gas from producing fields and reinjecting it
into other  reservoirs  where it is stored until  needed to meet market
requirements.   Approximately 40  percent of the  natural gas consumed
annually by residential  space heating customers in the U.S. has been
withdrawn from  underground  storage (Reference 14).

     Because  storage  facilities  are used to  augment the supply of gas used
during the  colder months of the  year resulting  from increased space
heating, most  storage facilities are located near the major consumption
areas.   However,  many storage areas are located near the major producing
areas  of Louisiana, Texas,  Oklahoma, Arkansas,  and Kansas  (see Figure
D-ll).

     The U.S.  has an  ultimate reservoir capacity of 7,330  billion cubic
feet distributed  among 385  individual underground storage  facilities
located  throughout 26 states.  There are three  types of storage facilities:
depleted gas  or oil  fields, waterbearing sands, or salt domes.

     The largest  concentration of storage facilities exists within Region V
(Illinois,  Indiana, Michigan, Minnesota, Ohio,  and Wisconsin), which is
also a major  natural  gas consumption area.  In  total, 38 percent of U.S.
natural  gas reservoir capacity is located in Region V.  The next largest
concentration  of  storage facilities is in Region III  (Delaware, District of
Columbia, Maryland, Pennsylvania, Virginia,  and West Virginia).  Storage
capacity in Region III amounts to 18 percent of the U.S. total.  The
remaining 44  percent  of storage  capacity exists in Region  VI   17 percent,
Region VII    9  percent, Region IX   7 percent,  Region VIII   5 percent,
Region IV    4  percent, Region II   2 percent, and Region X   about 0.4
percent.  No  storage  capacity exists in Region  I (see Table D-8).

D.2.3  Natural  Gas End Uses

     Natural  gas  is used primarily as a fuel resource.  However, its
gaseous  hydrocarbon compounds such as ethane, butane, and  propane are used
by the petrochemical  industry for feedstocks as well.  The total volume of
natural  gas consumption in  1978  totaled 19,624  billion cubic feet, which is
nearly 26 percent of  domestic energy consumption (Reference 15).  Natural
gas ranks second  in the domestic market share of energy consumption behind
petroleum.
                                     D-28

-------
o
I
ro
10
                                 HOI I Cvctetf
                    Source:  Petroleum Storage and Transportation Capacities,  Gas  Pipeline.
                             Vol. VI, National Petroleum Council, December,  1979.
                               Figure D-ll.  Location of Underground Gas Storage

-------
         TABLE D-8. U.S.  NATURAL  GAS  STORAGE  VOLUMES AND CAPACITIES
                               Maximum Stored           Ultimate Reservoir
                                 Gas  1979a   ~            Capacity 1978°
     Region                   (Billions of FtJ)         (Billions of FtJ)
I
II
III
IV
V
VI
VII
VIII
IX
X

147
1,398
350
2,432
1,052
535
257
355
38
0
151
1,330
314
2,761
1,231
642
368
503
31
  Total U.S.C                      6,563                    7,330


a Maximum U.S.  stored  gas  obtained from DOE/EIA 0035/02 (80) Monthly Energy
  Review, p.50.  State  and  division data obtained by multiplying percentage
  of maximum stored  gas  in 1978 (Source:   AGA,  Gas Facts 1978, p.48, 1979)
  times the 1979 U.S.  maximum stored  gas.

b Source:  AGA,  Gas  Facts  1978, p.48, 1979

c Total may not  equal  sums because of independent rounding.


     The largest single  end use of natural gas  is space heating.
Residential and  commercial  services combined are the major consumers of
natural gas for  space  heating,  which  accounts for more than  38 percent of
natural gas consumption  in these sectors.   Such a large market share was
brought about  by the  installation of  gas  furnaces in new homes and con-
versions to natural  gas  from coal  and heating systems which  resulted in
annual growth  rates  of 4.5 percent prior  to the 1970's; however, government
restrictions have  since  limited growth because  of declining  natural  gas
reserves (Reference  16).

     The largest consumer  of natural  gas  by class of service is the
industrial  sector.   Industrial  consumption amounted to almost 43 percent of
the total gas  sales  in 1978.   The five largest  consumers, which amassed 60
percent of industrial  gas  sales, were:  (1) electrical services, (2) chemi-
cals and allied  products,  (3) primary iron and  steel, (4) food and kindred
products, and  (5)  fabricated metal  products, machinery equipment, and
supplies.
                                     D-30

-------
    It is expected that electric  utilities  and  other industrial users of
natural gas will shift increasingly  to  sources of low-Btu synthetic gas
production as shortages of natural gas  become increasingly acute.  This
will result in consumption of low-Btu synthetic  gas  near the point of its
production because it cannot be transported  economically over long dis-
tances by pipeline.  Consequently, this will  leave natural  gas and high-Btu
synthetic gas production primarily to residential  and commercial users.

D.2.3.1  Geographical Areas of End Use

    Three major market areas account for  69 percent of the consumption of
natural gas in the U.S.:  Region VI  {Arkansas, Louisiana, New Mexico,
Oklahoma, and Texas); Region V  (Illinois,  Indiana, Michigan, Minnesota,
Ohio, and Wisconsin); and Region IX  (Arizona, California, Hawaii, and
Nevada).

    Industrial use amounts to 56  percent  of total natural  gas consumption
in  the south central region, Region  VI.  Electrical  generation services are
the  largest industrial consumers by  sales, followed  by:  (1) chemicals and
allied products, (2) petroleum  refining,  (3) petroleum and natural gas
production, and (4) paper and allied products.

    The Great Lakes states of Region V  (Illinois, Indiana, Michigan,
Minnesota, Ohio, and Wisconsin) constitute the next  largest natural gas
consumption region with 20 percent of the  total  U.S. natural gas consump-
tion.  Residential and commercial  use is the largest consumer followed by
industral service.  The five largest industrial  users in this area by sales
are:   (1) primary  iron and steel,  (2) other  services, (3) fabricated metal
products, machinery, equipment and supplies, (4) chemicals and allied
products, and  (5)  food and kindred products  (see Tables D-9 and D-10).

    The western states of Region  IX (Arizona, California, Hawaii, and
Nevada) are the third largest consumption  areas  of natural gas.  Together
they account for 9 percent of the  natural  gas consumption.  Residential and
commercial use are the largest  consumers  followed by industrial use.  The
five largest industrial consumers  by sales are as follows:  (1) electrical
services, (2) petroleum refining,  (3) food and kindred products,  (4)
chemicals and allied products,  and (5)  other services.

D.3 PETROCHEMICALS

    This section  is primarily  concerned  with the assessment of the current
existing marketing system infrastructure  associated with the production and
distribution of petrochemical products  and by-products derived  from petro-
leum and natural gas feedstocks.   The assessment puts into  perspective the
types  and relative quantities of  petroleum-based products and by-products
that are in commerce today.   In  addition,  this assessment serves  as the
framework for  the  baseline marketing system  into which oil  shale  and  coal-
derived  synfuel products and by-products  are introduced  into the
petrochemical  industry as they  become available.
                                    D-31

-------
      TABLE D-9.  U.S. NATURAL GAS CONSUMPTION   1978  (MILLIONS OF Ft3)
Region  Residential  Commercial  Industrial
 Trans-   Electric
portation Utilities
Total
I
II
III
IV
V
VI
VII
VIII
IX
X
Total
U.S.
138,052
467,315
484,657
392,860
1,669,674
514,692
387,494
203,976
579,305
64,981

4,903,006
71,847
190,993
219,011
269,224
796,353
340,293
253,148
131,110
270,962
58,165

2,601,106
50,725
134,346
390,703
660,401
1,442,010
4,323,245
391,074
232,493
544,283
235,329

8,404,609
646
806
44,244
91,051
35,960
209,236
81,456
14,521
29,874
19,655

527,449
1,596
1,992
3,459
220,580
75,034
2,277,784
166,359
38,682
378,295
24,525

3,188,306
262,866
795,452
1,142,074
1,634,116
4,019,031
7,665,250
1,279,531
620,782
1,802,719
402,655

19,624,476

Source:   Energy  Information  Administration, State Energy Data Report,
          April,  1980.

     Because  the petrochemical  industry encompasses a diversity of
hydrocarbon chemical  compounds  (i.e.,  primary petrochemicals, petrochemical
intermediates,  petrochemical  products, and petrochemical by-products),  it
was necessary to limit  the scope of this assessment to only the following
selected  primary petrochemicals:  ethylene, propylene, benzene-toluene-
xylene  (B-T-X)  group,  and butadiene.   The selection of these six petro-
chemicals was based on  their being the primary petrochemicals, and on  their
significant use  in  the  production of petrochemical  intermediates, products,
and by-products.  Table D-ll gives the U.S. production rate (billions  of
Ib) of  the six  selected primary petrochemicals, and ranks them according to
the volume of production reported for 1979.

D.3.1   Background

     The  definition of petrochemicals varies widely in the literature
depending on  the purpose of the statistics reported.  The general defini-
tion is that  petrochemicals include all chemical compounds derived from
crude oil  and natural  gas hydrocarbons.  These compounds include a variety
of petrochemicals (ethylene, propylene, benzene, toluene, xylene, and
butadiene) and  intermediate organic compounds that are converted in down-
stream  processes into such petrochemical products as synthetic fibers,
plastics, synthetic rubber, medicinals, nitrogen fertilizers, pesticides,
and industrial  solvents (Reference 17, 18, 19).  However, the literature
                                     D-32

-------
                              TABLE D-10.
GAS  UTILITY LARGE VOLUME SALES,  BY  TYPE OF  INDUSTRY
AND  BY DIVISION,  1978  (BILLIONS  OF  Ft3)
o
 i
CO
OJ
Industry Classification
Agricuhare. forestry and fithenes
Petroleum and uniral gas production
Other mining
Y^M li^ unjiiWM
Other transportation, eommunication.
and public utilities
Hotels, rooming houses, and camps
Laundries, cteuing and dyeing
Other services
Other non-manufacturing
Food and kindred producu
Textile producu. apparel, fabnci etc.
Fumitutt. lumber, and other »ood product!
Paper and allied producu
Carbon black
Chemicals and allied producu Icicept carbon black)
Petroleum refining
Rubber and mbceUaaceas pUstic producu
CUsa producu
Cement
Clay producu. potter-, etc
Other none producu and miscellaneous
Primary iron and steel industries
Primary non-ferrous industries
Fabricated metal products, machinery
equipment and supplies
Transportation equipment
Other manufacturing
Public administration
Teanl (Som)b
TeMl Claim ii rial. MostruU and -Other" aalea
el e*.'a mporttng Ihlt labU
Total CM ttfllrj MM? Commercial.
	 WnatrUI^-OU^-MU. 	
Total
U.S.
28.5
42.9
41.5
1,495.8

76.5
21.5
181
269.8
139.2
2673
367
42.0
193.7
32.8
589.7
236.4
40J
170.9
57.2
83.3
90.3
561.3
2024

248.1
989
113.4
56.0
5,253.8

7,377.0

9,647.8
New
0.0
0.0
a
6.3

1.8
O.I
a
1.2
OJ
IJ
1.6
a
0.7
a
1.3
0.2
0.4
1.7
O.I
a
1.7
4.7
0.7

5.0
0.8
1.4
0.4
33.7

99.5

127.0
Middk
Atlantic
O.I
0.0
0.4
3.3

1.0
1.7
0.2
9.3
II 6
9.4
1 9
0.9
9.4
0.0
18.7
5.2
3 1
42.0
a
9.9
8.0
1027
II 2

38.6
10.4
II 7
2.9
315.6

644.5

735.4
East
North
Central
6.1
a
3.0
56.8

23.2
10.0
9.7
155.8
75.5
101 6
3.S
8.1
54.8
1 0
1230
II 1
180
5' 2
29
16.8
22.8
3107
73.8

1444
62.0
40.2
170
1,409.7

1,814.5

2.161.2
West
North
Central
7.7
4.4
0.4
135.9

14.8
0.3
0.1
15.3
2.8
43.2
0.3
0.8
3.8
21.5
93.9
16.1
3.2
10.9
13.6
6.2
9.2
31.0
12.5

16.7
83
152
3.6
491.6

779.4

931 6
South
Atlantic
a
•
a
52.3

0.9
1.0
0.4
8.2
2.0
12.1
17.1
1.6
18.5
2.1
r.6
4.8
0.7
I8.S
138
23.5
14.0
216
8.6

51
3.S
5.8
100
333.9

561.9

721.1
East
South
Central
0.2
I.I
0.4
19.0

0.5
0.0
0.1
4.4
4.3
5.7
5.5
5.7
33.5
0.0
39.0
6.8
4.7
8.2
4.2
8.4
3.8
39.5
18.1

11.5
2.7
15.2
1.5
243.9

341.7

484.9
West
South
Central
5.0
23.4
8.7
740.7

13.0
1.7
0.2
14.1
0.7
11.8
0.5
8.0
19.5
7.0
131 8
87.6
2.7
9.8
6.6
2.1
3.8
2.5
63

3 1
0.6
4.4
1.9
1,117.3

1445.6

1.757.0
Mountain
1.9
81
21 7
173.2

6.0
0.5
0.0
11.5
9.8
18.7
a
1.5
13.4
0.0
39.3
15 S
2.2
1.0
94
5.0
2.9
234
490

2.8
0.3
32
76
427.9

561.8

624.7
PadrV
7.4
5.9
7.0
308.3

13.4
S.2
7J
49.0
32.2
43.5
6.1
15.4
40.0
1.2
S4J
88.4
SJ
21.5
6.7
11.2
24.1
2S.2
224

20.9
10.5
16.3
11.3
880.0

1,028.1

1.102.8
             a Lett than u Ui
             b Includa th< following quantnm of gas for elecnc genernwn not included in Total Commend!. Induitnal and "Other" talci of companies reporting thn table or at Toul Cai UliKt) Induflrjr utei Suet
               quantities repmeni iranrfcn b> (he fii department to the electric department of combination gu and electric companies
                                                                 0.0       2.5      49     30.6       4.6       1.7      111.)     32.5       0.0
              Source:   American  Gas  Association, Gas  Facts  1978,  p.  92,  1979.

-------
     TABLE D-ll.  PRIMARY  PETROCHEMICALS  RANKED  BY  VOLUME  OF  PRODUCTION
              Petrochemical                  Production  (109  lb)a
Ethylene
Propylene
Benzene
Tol ueng
Xylene
Butadiene (1,3)
TOTAL U.S.
29.19
14.30
12.72
11.86
11.07
3.55
82.69

     Quantities  reported  for  1979  production  in  C+EN,  May 5,  1980
      All grades  including  p-xylene 4.18 and  xylene  6.89
      Rubber  grade

Source:   "C&EN's  Top  Fifty  Chemical Products  and  Producers Special Report,"
         Chemical and  Engineering News,  May 5,  1980,  pp.  33-37.


states that  "there  is  no  standardized  definition  of  the petrochemical
industry" {Reference  17,  20).

     The  U.S.  was the  early pioneer of the petrochemical  industry, which
began its most  rapid  growth during  World War  II.   Much  of the  growth  in the
first-stage  operations of the  industry,  which  involved  production  of  pri-
mary petrochemicals,  was  concentrated  along the U.S.  Gulf Coast  states  {EPA
Region VI) where  abundant  supplies  of  petroleum and  natural  gas  raw
materials/feedstocks  existed.   Production of  these primary petrochemicals
is still  concentrated  in  Region VI, and  the states of Texas  and  Louisiana
account for  about 70  percent of all primary petrochemical  production
(Reference 21).

     The  petrocehmical  industry can be briefly characterized as  that
portion of the  chemical and allied  products industries  that  utilizes  cer-
tain petroleum  and  natural  gas  fractions and  converts these  feedstocks  into
a wide variety  of primary  petrochemicals.  These  primary  products  are then
transferred  to  other  sectors of the petrochemical  industry throughout the
U.S. for conversion to petrochemical  intermediates,  and to such  petro-
chemical products as  synthetic  fibers, plastics,  synthetic rubber, etc.
These products, in  turn,  are fabricated  by many different industries  into
thousands of  consumer  products  (Reference 21).  Five of the  selected
primary petrochemicals  are  shown in Figure D-12 in relation  to how the
industry derives  primary  petrochemicals  and petrochemical  products from
petroleum and natural  gas  feedstocks.   The figure also  shows the major
consuming industries  and  direct end uses of the final products.   Figure


                                     D-34

-------
       Fwdnocfca

                                                                                                                       Induitrln
O
 I
u>
tn

Petroleum

1



Naphtha
Gil Oil
i

i


Ethane
Propane
Bulanei

NMuf *l 0*1






Ethy'ene
28 Ulllon
pound!
Propytene
14 billion
poundi
Butadiene
4 billion
poundi
Beniene
11 billion
poundi
P-nylene
3 billion
poundi
Ammonia
35 billion
poundi



•
Plaitldpn
Dyeituffi and
Pigment!
Industrial
Organic
Chemical!
SIC-28C5. 2869
Salei: $30 billion
Solvent!
Rubbor
Proonlnf
Chemlcali
Peitlcidet
•V
Plaitlc Reiln
SIC 2821
Salei $11.4 billion


Fabricated Plaitln
SIC 3079
Salei S2J? billion
Nitrogen Fertilizers
SIC 2873
Salei $2.5 billion


Fertiliser Material!
SIC 287S
Solei S2 billion
                                                                                                                                          Pick aging
                                                                                                                                          Building & Conrauctton
                                                                                                                                          Trinioortatlon
                                                                                                                                          KouKwarn.
                                                                                                                                          Furniture,
                                                                                                                                          Appliance!
Synthetic Fiber!
SIC 2824
Salei $5.9 billion


Textile Mill Product!
SIC 22
Salei $40 billion


Apparel
Upholitry Fabric
Tire Cord
Surface Active
Agenti
SIC 2843
Salei $1.0 billion


SoifH & Detergent!
SIC2S41
Salei $0 billion


Industrial
& Coniumtr Otanrnf
Compound!
Synthetic Rubber
SIC 2822
Salei $2.4 billion


Rubber Product!
SIC 301 -308
Silei $16 billion
Tlrei
Bclttnf
How
Medicinal!
SIC 2822
SaleiS 1.7 billion


Pharmaceutical!
SIC 2834
Salei $12 billion
H Ethical and
Proprietary
Drug!
                                                                                                                                         •Crop)
          Petrochemical Purchapri
          Fefdstoeki. Fuel
          Raw Material! tnd Supptlei
          $13.0 Billion 	
   Petrochemical Induilry
   Value Added
-t^ J23.2 Billion	
                Source:   Arthur  D. Little,  Inc., 1978 Petrochemical  Industry Profile
                           Petrochemical  Energy  Group,  September 5.  1979
   Petrochemical Salt?
   to Other Induttritt
_>». $36.2 Billion	
                                                               - A  Report to  the
                                         Figure  D-12.    The  U.S.  Petrochemical  Industry  - 1978

-------
D-13 shows the flow of  primary  petrochemicals  to  the  motor  vehicle
industry, highlighting  butadiene  (raw  material  for  rubber making)  and
materials for paint,  batteries, and  synthetic  fibers.   During  1979,  the
total U.S. production of  the  selected  primary  petrochemicals was  82.69
billion pounds as  compared  to 70.72  billion  pounds  produced in  1978
(Reference 22).

D.3.2  Major Petrochemicals

     In this section, primary petrochemicals selected for this  assessment
are discussed in terms  of the feedstock  sources from  petroleum  and  natural
gas and U.S. gross production in  1979  and  1978.  The  regional  breakdown  of
the gross production  for  benzene  in  the  U.S.  is given by the EPA  federal
regions.  Also, the selected  primary petrochemicals are discussed in terms
of the existing industry  modes  of transportation,  storage,  and  distribution
systems.  Because  of  the  lack of  data  to properly assess ethylene,
propylene, toluene, xylene, and butadiene,  only benzene is  discussed as  an
example petrochemical for transportation and storage  systems and  end uses.

D.3.2.1  Sources

     Basically, petroleum and natural  gas  are  the two primary  sources  of
petrochemicals produced in  the  U.S.  today.   However,  some petrochemicals
(e.g., benzene) are made  from coke-oven  light  oil,  a  by-product of steel
manufacturing.  Petroleum is  used as the primary  feedstock  material  for  the
selected primary petrochemicals discussed.   Natural gas, on the other  hand,
is used for the organic synthesis of ethylene.   The synthesis  gas is pro-
duced from ethane, which  is the third  step in  the natural  gas  refining
process.

     In the case of petroleum-derived  petrochemicals, the  raw  materials
(crude oil) are used  as feedstock at the petroleum  refinery.   These  raw
materials are catalytically changed  into several  organic chemical  com-
pounds.  The types and  quantities of petrochemicals produced are  somewhat
dependent upon the particular catalytic  process used  and the desired end
products.  Natural gas-derived  petrochemicals  are produced  in  a similar
manner.  Providing that most  natural gas transported  to the refinery is
wet, i.e., contains natural gas liquids, the processing steps  require
drying the gas, removing  hydrogen sulfide, and liquefying  the  gas.   In the
second step of natural  gas  processing, the basic  alkane (i.e.,  ethane)
gases are produced.   These  are  subsequently modified  to produce
petrochemicals such as  ethylene and  propylene  (Reference 23).

     The U.S. gross production  of the  selected primary petrochemicals  was
82.69 billion pounds  during 1979  and 70.72 billion  pounds during 1978.
This 1979 production  is an  annual increase of  about 16 percent  over the
1978 production.   Table D-12  shows the U.S.  production of the  selected
petrochemicals ranked by  the  volume  of production for 1978-1979.   This
table shows that the  average  annual  percent  change  in the  primary petro-
chemical production varied  and  resulted  in an  increase of  0.85  percent for
butadiene and about 55  percent  for toluene over 1978  production.   Toluene


                                     D-36

-------
TANA

 	L	
  COLORADO
             I      KANSAS     \

             I                 1
  WMEXICO- -£_._- ~ oVlAH

            TEXAS ]
              petrochemical
              Feedrtock
  Source:  Arthur D. Little,  Inc., The Petrochemical  Industry  and  the  U.S.  Economy-
           A Report to the Petrochemical Energy Group,  December 1978.
 Figure  D-13.  The Flow of Petrochemicals  to  the Motor Vehicles Industry
                                     D-37

-------
had the  largest  annual  percentage growth while butadiene had the smallest.
In 1978, the  production  of toluene declined 1.2 percent  below the 1977
production.   The  increase  of 55 percent growth in 1979 is attributed to
toluene's  relatively  new use as a blending agent to raise the octane rating
of unleaded  gasoline  as  observed by industry (Reference  22).

      Historically (1969-1979),  the production statistics of the selected
primary  petrochemicals  show that the average annual percent change in
production varied and show an increase of 1.3 percent for butadiene and 9.9
percent  for  p-xylene  during that period.  These statistics also show that*
butadiene  was  the least  produced while ethylene ranks as number one among
the selected  primary  petrochemicals produced during the  ten-year period
(Reference 22).

      Using these  statistics as  a basis, the future supply of feedstock
materials  can  be  determined conservatively.  It is anticipated that syn-
fuels derived  from coal  and oil shale will provide a small percentage of
feedstock  materials for  production of petrochemicals, because of our
reduced  national  supply  of petroleum and natural gas and the concern for
how these  natural  resources should be used in the future as fuels and
feedstock  materials (Reference  20).

       TABLE  D-12.   UNITED  STATES PRODUCTION OF SELECTED  PETROCHEMICALS
                               RANKED BY VOLUME
                        1979             1978              1978-1979
Primary             Production        Production      Average Annual Change
Petrochemicals    (Billions  of Ib)   (Billions of Ib)          (%)
Ethyl ene
P ropy 1 ene
Benzene
Tol uene
Xylene3
p-Xylene b
Butadiene (l,3)u
29.19
14.30
12.72
11.86
6.89
4.18
3.55
25.96
13.01
10.94
7.64
6.13
3.52
3.52
12.44
9.92
16.27
55.24
12.40
18.75
0.85
Total                 82.69              70.72              125.87


a Include all  grades
  Rubber grade
Source:  "C&EN's Top  Fifty  Chemical  Products and Producers   Special
Report", Chemical and Engineering News,  May 5,  1980,  pp.  33-37.

     The regional disaggregation  of  the  gross U.S.  production of primary
petrochemicals produced during  1979  is  based upon the quantities produced
by each state as reported  in  the  Draft  Environmental  Impact Statement -
                                     D-38

-------
Benzene Emissions  from Benzene Storage Tanks, Background  Information  for
Proposed Standards,  EPA-450/ 3-80-034a (Reference 24).This  regional
breakdown is  required  to  determine the types and quantities of  petro-
chemicals transported,  stored, and distributed throughout the U.S.  The EPA
report, the only available data at this time, deals specifically  with
benzene.  Thus, using  the data reported for the individual states,  the
benzene production data by state was mapped to the ten EPA regions.   The
results of this mapping process, shown in Table D-13, show that over  58
percent of the  benzene produced in the U.S. during 1979 came  from EPA
Region VI, which includes Louisiana, Texas, and Oklahoma.  The  second
highest producing  region  in the U.S. is Region II, which  includes New
Jersey, New York,  and  the U.S. territories of Puerto Rico and the Virgin
Islands.

D.3.2.2  Transportation

    The transportation network is a vital link in the transport,
distribution, and  storage of petrochemicals.  Transportation  connects
producers and consumers,  who are widely distributed throughout  the  U.S.
The  purpose for assessing the transportation of these selected  primary
petrochemicals  is  to gain an understanding of the existing transportation
network in order to eventually determine how synfuel-derived  petrochemicals
will fit into the  existing transportation infrasturcture.  The  data
required to completely assess the petrochemical network is not  available in
the  required  format.  (This data needs to be reported in  the  form of  petro-
chemical types  and quantities transported by states, federal  regions,  or
PADD's to make  it  consistent with the data presented for  production.)
Thus, the transportation  of the selected primary petrochemicals is
difficult to  assess at this time.

    Some transportation  data was obtained from the Department  of Commerce,
Bureau of Census,  census  of Transportation Department.  This  data shows
transportation  of  the  selected primary petrochemicals as  an aggregate with
crude products  from coal  and petroleum tars.  The Census  Bureau classifies
commodity transportation  modes according to a 5-digit Standard
Transportation  Commodity  Classification (STCC) code that  is similar to the
4-digit-level Standard Industrial Classification (SIC) code.  The two codes
are  not directly related.

    The data obtained from the Census Bureau was abstracted  by telephone
from the 1972 Census of Transportation Report  from a staff member in  the
transportation  department (Reference 25).   Tn this report, the  selected
primary petrochemicals are aggregated into the STCC code  28141  -  Crude
Products from Coal and Petroleum Tars.  The U.S. total tons  shipped for
this code by  transportation mode and the  percent transported  by each  mode
 is presented  in Table  D-14.   (It was cautioned that this  data has a
standard error  of  26 percent.)  As noted  in Table D-14,  barge transporta-
tion accounted  for 44.1 percent, rail-34.8 percent, motor carrier-20.2
                                    D-39

-------
TABLE D-13.  REGIONAL/STATE OR TERRITORY PRODUCTION OF BENZENE-1979
 Region/State                Capacity               Percent of
 or Territory             (Billions  of  Ib)         Total Capacity
New England (I)
New York/New Jersey (II)
New Jersey
New York
Puerto Rico
Virgin Islands
Subtotal
Middle Atlantic (III)
Maryland
Pennsylvania
Subtotal
Southeast (IV)
Kentucky
Subtotal
Great Lakes (V)
111 inois
Michigan
Ohio
Subtotal
South Central (VI)
Louisiana
Texas
Oklahoma
Subtotal
Central (VII)
Kansas
Subtotal
NA
0.223
0.146
1.876
0.413
2.658
0.095
0.846
0.941
0.407
0.407
0.394
0.191
0.331
0.916
1.635
5.660
0.153
7.448
0.083
0.083
NA
1.75
1.15
14.75
3.25
20.90
0.75
6.65
7.40
3.20
3.20
3.10
1.50
2.60
7.20
12.85
44.85
1.20
58.55
0.65
0.65
                                 D-40

-------
                         TABLE D-13.   (CONTINUED)
    Region/State                Capacity                Percent of
    or Territory             (Billions  of  Ib)          Total  Capacity

    Mountain (VIII)
      Utah                       0.025
      Colorado                   0.020

    Subtotal                     0.045                     0.35

    West (IX)
California
Subtotal
Northwest (X)
Total U.S.
0.222
0.222
NA
12.720
1.75
1.75
NA
100.00

NA   Not available

Sources:  "C&EN's Top Fifty Chemical  Products  and  Producers   Special
Report", Chemical and Engineering  News.  May 5, 1980,  pp.  33-37.

Adapted from Environmental Protection  Agency,  Draft Environmental  Impact
Statement - Benzene Emissions  from Benzene  Storage Tanks  -  Background
Information for Proposed Standards,  EPA-450/3-80-034a.  September.  1980
percent, and private truck-0.9 percent.  Also,  this  data  represents only
long-distance transport of materials versus  local  transport.   Pipelines,
which were considered initially to  be  another mode of transportation, are
not included as part of the transportation  network for STCC 28141
(Reference 25).


0.3.2.3  Benzene Storage

    Benzene storage facilities are located throughout 19 states within the
continental U.S.  There are 494 tanks  in 143 facilities.   There are three
types of facilities: (1)  benezene  producing facilities; (2) benzene con-
suming facilities; and  (3) bulk storage  terminals (Reference 24).

    The greatest concentration of storage facilities is in Texas.  Texas
contains 52 percent of  the total  combined  production storage facilities,  36
percent of the  total consumer storage  facilities, and 75 percent of the
bulk  storage facilities.


                                    D-41

-------
     Total U.S. benzene storage capacity  is equal to 278 million gallons.
Of the 143 facilities that are known to store benzene, 54  (41 percent) are
benzene producers, 73 (56 percent) are benzene consumers,  and 4  (3 percent)
are bulk storage terminals.


    TABLE  D-14.  U.S. SHIPMENT  OF  CRUDE  PRODUCTS FROM  COAL AND  PETROLEUM
           TARS   TOTAL  TONS  SHIPPED  BY TRANSPORTATION  MODE IN 1972


                                     Percent              Tonsa
      Transportation                Transported          Transported
        Mode                         By  Mode             By Mode
Barge
Rail
Motor Carrier
Private Truck
44.1
34.8
20.2
0.9
1,030,176
812,928
471,872
21,024
      U.S.  Total                      100.0             2,336,000


 aThis  data represents total  tons transported only long distance.   Pipeline
  transportation  was  not included.  This data also has a standard  error of
  26  percent  or 607,360 tons

 Source:   Personal  communication with Robert Torene, Department of Commerce,
          Bureaus of  Census,  Census of Transportation, September 8, 1980
 D.3.3  Benzene  End Use

      Benzene  currently  is  used almost exclusively as  a feedstock material
 in the production of  other materials.  The major benzene derivatives  used
 in producing  other materials are:   ethylbenzene-50 percent,  cumene-15
 percent,  cyclohexane-15 percent,  and aniline-5 percent (Reference 24).
 Ethylbenzene  is used  in the production of styrene for polystyrene, and
 cumene is  used  for phenol  and for  starting material  for nylon
 intermediates.

      The  regional  consumption of benzene and its major derivatives is
 constrained to  seven  federal regions consisting of ten states.   These
 states,  in  order of  magnitude of consumption, are:  Texas, Louisiana,
 Michigan,  Pennsylvania, Kentucky,  Oklahoma, New Jersey, Kansas, niin°Js>
 and  California.  (Note:  the territory of Puerto Rico is excluded.)  The
 regional  aggregates  of  these states  include:  Region II, New Jersey;  Region
 III  Pennsylvania; Region  IV, Kentucky; Region V, Michigan and  Illinois;
 Region VI,  Texas,  Louisiana and Oklahoma; Region VII, Kansas; and Region
 IX,  California.  However,  not all  derivatives are produced in all states.
 Refer to  Table  D-15  for a  more detailed representation.

                                       D-42

-------
   TABLE D-15.   BENZENE CONSUMPTION IN  THE U.S.  BY  EPA REGION    1979

Region/State or Territory
New York/Mew Jersey-II
Puerto Rico
New Jersey
Middle Atlantic-II
Pennsylvania
Southeast-IV
Kentucky
Great Lakes-V
111 inois
Michigan
South Central -VI
Louisiana
Texas
Oklahoma
Central -VI I
Kansas
West-IX
TOTAL U.S.
Consumption
2.47^
0.27b
2.74
0.73b
0.68&
0.2lb
1.17C
1.38
7.04C
20.11d
0.48e
27.63
0.26b
0.20b
33.62
Quantities in MMBBL
% of Consumption % of
7.35
0.81
8.16
2.17
2.01
0.64
3.49
4.13
20.93
59.83
1.42
82.18
0.78
0.58
100.01
Production
5.97
0.66
6.63
1.76
1.64
0.52
2.84
3.36
17.00
48.59
1.15
66.14
0.63
0.49
81.25f
       NOTE:

        acyclohexane   1.23, and cumene   1.24 production.

         cumene  production.

        cethyl benzene  and  styrene  production.

        dethyl benzene  and  styrene   11.8, cyclohexane   4.83,  and  cumene   3.48
         production

        ecyclohexane production.

         total  benzene production   41.38 million barrels.

                                             t
Sources:  Adapted from  "C&EN's  Top  Fifty  Chemical Products and Producers
         Special Report",  Chemical  and Engineering News, Hay 5,
         1980, pp.  33-37.

         Adapted from  Environmental Protection  Agency, Draft Environmental
         Impact Statement --Benzene Emissions  From Benzene Storage Tanks~-
         Backqround Information  for Proposed Standards,
         EPA-450/3-80-034SUD16a,  September, 1980.

                                        D-43

-------
     TABLE  D-16.   U.S.  CONSUMPTION OF BENZENE  AND ITS  MAJOR  DERIVATIVES
                           BY  SELECTED EPA REGIONS
                             (QUANTITY IN MMBBL)

Benzene
Consuming
Products
Ethyl benzene/
Styrene
Cyclohexane
Cumene
Total Benzene
Region III
Middle
Atlantic


0.73
0.73
Region IV Region V
Southeast Great Lakes
1.17

0.68 0.21
0.68 1.38
Region VI Region VIII
South Mountain
Central
18.84
5.31
3.48
27.63

 Sources:   Adapted from "C&EN's Top Fifty Chemical Products and Producers
 Special  Report", Chemical and Engineering News, May 5, 1980, pp. 33-37.

 Adapted  from Environmental Protection Agency, Draft Environmental Impact
 Statement—Benzene Emissions from Benzene Storage Tanks - Background
 Information for Proposed Standards, EPA-45Q/3-80-034a, September 1980.

      The  major  derivatives of benzene eventually yield end products  that
 can  be classified.   The major end products are:  polystyrene-25 percent,
 other styrene resins-10 percent, nylons-20 percent, and styrene-butadiene
 rubber-5  percent (Reference 25).   About 25 percent of  these products are
 ultimately used  in  consumer goods such as packaging, toys, sporting  goods,
 disposables,  novelties, and other small manufactured items (Reference 24).
 Another  17 percent  of benzene derivatives, especially  nylon fibers and
 resins,  are  used in  the manufacture of household goods such as furniture,
 appliances,  and  carpeting (Reference 25).  The transportation industry
 accounts  for  another 17 percent of benzene derivative  consumption
 (Reference 25).   Plastics, fibers, elastomers, and rubber are used in the
 production of boats,  trucks,  automobiles, and airplanes.

      In  characterizing the current regional  consumption patterns, Table
D-16  shows that  Regions V and VI  are the largest consumers of benzene and
 its major  derivatives.  These regions together consumed about 86 percent of
the total  benzene consumed in 1979, corresponding to about 70 percent of
the total  production.   The remaining 14 percent was  consumed in Regions  II,
 III,  IV,  VII, and IX.

      It  is worthy to note that no consumption of benzene  occurred in Region
VIII; however, this  region produces benzene,  about 0.15 MMBBL (0.35  billion
Ib),  as shown in Table D-13.   Table D-16 shows the current consumption
patterns  for  benzene  and  its  major derivatives in the  U.S. for 1979  by
selected  EPA  regions.   This table applies only to the  selected five  regions
of synfuels production (see Section 3.1) chosen as likely locations  of
synfuels  plants.  Thus, Regions,  II,  VII, and IX are omitted.
                                     D-44

-------
D.4  SOURCES  OF  POLLUTANT  EMISSIONS TO THE ENVIRONMENT FROM CONVENTIONAL
    FUELS  TRANSPORT  AND  STORAGE

    Synfuels  products  and by-products will be released into the
environment during  transportation, storage, and utilization in much  the
same manner as currently  used fuels are.   The existing conventional  fuel
and petroleum product distribution system is expected to be used,  and  the
major end uses of the synfuel products are expected to be the same as  for
these products'  petroleum-based counterparts.  The existing distribution
system  is not  expected to be significantly affected by any of the three
scenarios for product buildup rates, although modifications may be
necessary.  The  major sources of synfuels emissions to air, water, or  land
are through normal  handling and end use operations, as well as accidental
releases  resulting  from leaks and spills.  Petroleum product storage and
transportation accounts for approximately 4 percent of the nationwide
volatile  organic compound  emissions and negligible amounts of the  other
criteria  pollutants (Reference 27).  Each of the sources of emissions  is
described in  the following sections.

D.4.1   Transportation Modes Used for Conventional Fuels

    Because  synfuels products will be transported by several modes, as
conventional  fuels  are now, the relative safety of each of these modes
needs to  be assessed  to determine the potential exposure from predictable
accidental  release  of products.  Each of the transportation modes  has
inherent  risks  from accidents, as described  in the following sections.
Table D-17  presents hdyrocarbon emission factors for petroleum  liquid
transport operations.  Products with the highest vapor pressures  have  the
highest rate  of  emissions, which also should be considered  in the  analysis
of various  synfuels products  (Reference 28).

D.4.1.1  Pipelines

     Pipelines currently transport  over 72 percent and 36  percent  of the
crude and refined petroleum  products  respectively, and virtually  all of the
natural gas in the  U.S.  This mode  offers  the  most economical  and  generally
the  safest  method for long-distance transport  of liquid  products.   Although
pipeline  systems have good safety  records, the economies of  scale  that make
pipelines  feasible  also create a potential for large accidental  releases of
products,  because the ability to detect a  release  and  isolate  the  release
point is  limited.   Environmental impacts from  normal pipeline  operations
are  very  low, producing atmospheric emissions  during venting.   The other
source  is  accidental  release, primarily caused by  pipeline  rupture.

     During 1979, a total  of  1,970  gas pipeline  and  251  liquid  pipeline
accidents occurred  (Reference 29).  Because  more  liquid  than  gaseous
synfuel products will use  pipelines,  emphasis  is  placed  on  the  former.
Existing  pipelines  will be used  for the most  part  under  both  the national
goal  and  nominal production  rate  scenarios,  with  new pipelines  connecting
to existing trucklines.  Additional pipelines  may  be needed  for the


                                    D-45

-------
                 TABLE D-17.
HYDROCARBON EMISSIOfl FACTORS FOR PETROLEUM LIQUID

TRANSPORTATION SOURCES (LB 103 GALLOfIS TRANSFERRED)
o
i
Source Gasoline
RAILROAD TANK CARS/TRUCKS
Submerged Loading
Normal Service 5
Balance Service 8
Splash Loading
Normal Service 12
Balance Service 1
Transit - Typical (Loaded) 0-0.1
- Extreme (Loaded) 0-0.8
- Typical (Empty) 0 - 0.11
- Extreme (Empty) 0 - 0.37
MARINE VESSELS
Tanker Loading 1-2.4
Barge Loading 1.3 - 3.3
Tanker Ballasting 0.8
Transit 3
Product Emission Factors
Crude Jet Jet
Oil Naphtha Kerosene


3
5

7
0.6
b
t
b
b

0.7
1.7
0.6
1


1.5
2.5

4
0.3
b
b
b
b

0.5
1.2
b
0.7


0.02
a

0.04
a
b
b
b
b

0.005
0.0013
b
0.005
No. 2
Fuel Oil


0.01
a

0.03
a
b
b
b
b

0.005
0.012
b
0.005
No. 6
Fuel Oil


0.0001
a

0.0003
a
b
b
b
b

0.00004
0.00009
b
0.00003

-------
accelerated rate scenario, as a production  rate  of approximately 2.5 MMBPD
of coal  liquids is projected by the  late  1990s.   Although refined products
would use existing pipelines, transporting  coal  liquids between the lique-
faction  plants and major terminals may  necessitate new pipelines.  Crude
shale oil  pipelines would also be needed  to feed into  existing pipelines to
refineries in Colorado, the Rocky Mountain  area, the Gulf Coast, or the
Midwest.  The crude shale oil pipelines would  be required under all three
scenarios by the late 1980's to handle  a  production  rate of 0.2 to 0.5
WBPD.

    Based on a nine-year history of pipeline  accidents, most accidents
occur in crude oil pipelines, which  in  1979 accounted  for over 50 percent
of the  accidents (Ref. 30).  Pipelines  carrying  gasoline, fuel oil, and LPG
comprised almost 40 per cent of the  total.   The  remainder of the accidents
occurred in pipelines carrying various  other products  as shown in Table
D-18.  The causes of pipeline accidents vary with the  greatest number
occurring from ruptures in the pipe.   Internal  corrosion was responsible
for less than 5 percent of the accidents.   Because the corrosive properties
of synfuels are unknown at this time,  an  accurate assessment of the
potential  for increased accidents from  corrosion cannot be made.

    As  previously mentioned, the potential  for  accidental release of large
amounts  of products is high, even though  the transportation system is
relatively safe.  In one pipeline accident  near  Devers, Texas in 1975, a
single  pipeline accident released more  than 600,000  gallons of natural gas
liquids.   Although  the  fate  of  all  the products on Table  D-18  is  unknown,
damage  losses  were  assessed  because the products were emitted  into water  or
soil and  could  not  be  recovered.   During  1978,  approximately  10  percent  of
all  petroleum  products  spilled  into waterways was from  pipelines  (Reference
31).  LPG  accounted  for  the  greatest amount of  product  lost  (approximately
59  percent),  although  LPG  pipelines were  involved in  only  13.5  percent  of
the  accidents.   Many of  these  conventional   products will  have synfuel
counterparts  that  will  have  the  same accident potential.   During  the  last
nine years,  pipeline accidents  decreased slightly.  This  trend  should
continue  as  pipeline construction and  operating  standards become more
stringent, making  both  conventional  fuels and synfuel   product  transport
safer.

    Another  factor  to  be  considered in transporting  synfuels by pipeline
is  the  location  of  potential  accidents.  The state of  Texas  has  consis-
tently  had the  highest  number  of  accidents  since  reporting records have
been kept.   However,  this  is  more a function of  the amount of pipeline in
the  state  than  a  reflection  of  poor operation.   The states with  the  highest
incidence  of  pipeline  accidents,  accounting for 60 percent of the total,
are  in  addition  to  Texas,  Oklahoma, Kansas,  Illinois,  Wyoming,  and
Louisiana.   All  of  these  areas  are expected to  be involved in synfuel
production or  end  use.

M.1.2  Water Carriers

    Waterborne transport  accounts for approximately  13 and 25 percent of
 -he  crude  and  refined  petroleum products transport, respectively.  The

                                     D-47

-------
                             TABLE D-18.  LIQUID PIPELINE ACCIDENT  SUMMARY - 1979
o
oo
Commodi ty
Crude Oil
Anhydrous Ammonia
Jet Fuel
Gasoline
Oil and Gasoline
Turbine Fuel
Diesel Fuel
Fuel Oil
Condensate
LPG
NGL
No. of Accidents
132
1
5
38
6
1
6
22
1
34
5
(%)
52.2
0.4
2.0
15.1
2.4
0.4
2.4
8.8
0.4
13.5
2.0
Loss of Product
(Barrels)
138,163
3,425
3,333
25,411
1,922
150
5,397
34,237
584
321 ,446
14,601
Percent of
all Losses
25.2
0.6
0.6
4.6
0.4
0.0
1.0
6.2
0.1
58.6
2.7
                   TOTAL
251
99.6
548,669
100.0

-------
major operational  source  of  air  and  water pollutants are from tanker and
barge loading and  unloading  and  from ballasting.   Most air pollution
emissions consist  of  volatile  organic compounds from gasoline handling,
because of its higher vapor  pressure than middle  distillates.

    Water transport  is used in  inland and ocean  waterways as well as in
the Great Lakes  region.   The largest amounts of oil  discharges during 1978
occurred in  river  channels on  the  Atlantic seaboard, and accounted for
about 43 percent of the oil  spilled  during 1978 (Reference 31).  The second
highest area is  the Gulf  Coast,  accounting for approximately 14 percent.
The largest  quantity  of products discharged were  fuel  oil, followed by
crude oil, gasoline,  and  diesel  oil.  These products all entered local
waters, contributing  to potential  water pollution impacts on aquatic life
and human health.

    The major sources of oil  spills from water transport are bulk transfer
of products  at marine facilities and leaks from vessels.  Hull and tank
rupture or other structural  failures are responsible for more than 70
percent of the accidents,  while  improper operation by personnel was
responsible  for  only  one  percent.

    By location,  in  1978 the  largest spills were in New Jersey, although
the greatest number of accidents occurred in Louisiana.  Other states with
significant  oil  spills were  Massachusetts, Delaware, and Rhode Island.

D.4.1.3  Tanker  Trucks

    Tanker  trucks transport approximately 14 percent of the  crude oil  and
36 percent of the  refined product in the United States.  Because of their
mobility, trucks will also be  used in synfuels transport, unless their
operating costs  reduce their competitiveness.  Tank truck emissions occur
during truck loading  at  storage terminals and unloading at  service
stations.  Trucks  are also used for transporting packaged petroleum
products such as lubricating oils, grease, and wax, which have little
contact with personnel handling the products and do not release  pollutants
during transport.   The most  volatile product transported  by  trucks  is
gasoline, which  releases  organic vapors during unloading  into  service
station storage  tanks.   The  gasoline is either splashloaded  or submerged-
filled, with the latter  method more frequently used due to  volatile  organic
compound emission  control requirements mandated by  state  implementation
plans  for those  areas not meeting air quality standards for  ozone.

    The potential for  accidental release of hazardous  materials
transported  by trucks is  related to the accident  rate of  all  highway
vehicles to  which  freight trucks are exposed,  regardless  of  the  commodity
carried.  Of the more than 11,000 incidents  involving  hazardous  materials
in transport, only 6  percent involved petroleum products  (gasoline),
although gasoline  accounted  for the  largest  amount  of  products  lost  during
1978.  Highway vehicles  were responsible  for  spills of  400,000  gallons of
oil  and 19,000 gallons  of chemical  compounds  into waterways,  accounting for
only 2.8 percent and  0.9 percent respectively  of  the  total  amount  of
products entering  waterways  from all  sources.

                                    D-49

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D.4.1.4   Railroads

      Railroads carry the least amount of crude oil and refined petroleum
products,  accounting for 0.33 percent and 1.8 percent, respectively, during
1977.  Railroads transport considerably higher quantities of petrochemicals
and  liquefied  petroleum gases used as feedstocks between chemical plants.
Pollutant releases consist primarily of organic compound vapors emitted
during product loading, unloading, and transit operations as well as
accidents when high pressure tank cars are ruptured.  Accidental  releases
can  also  enter waterways, depending upon whether the products volatilize or
remain liquid.  Railroad safety has emerged as a major concern of govern-
ment and  railroad officials because of the resurgence of railroads as a
means of  transporting freight and passengers.  Shipments of coal  within the
U.S.,  as  well  as to terminals for subsequent transport to overseas
markets,  is responsible for part of the industry's growth.  It is expected
that fuels and petrochemical transport will increase to take advantage of
existing  rail  networks that can be used to serve synfuels markets.  The
condition of the nation's railroads, specifically the tracks, are of
concern  because more than 77 percent of the 11,000 accidents were caused by
derailments.  There were 1,035 accidents involving hazardous materials that
required  evacuation of more than 26,000 people in various states  (Reference
32).  The highest number of train accidents occurred in Illinois, while
Texas had the greatest number of accidents involving hazardous materials.


Both of these  areas will  experience market penetration by synfuels, and
railroads are  expected to be used to transport heavy coal  liquids to
utility and industrial plants as well as to refineries for blending.

      Water pollution caused by railroad accidents provides a potential for
contamination  only when products are spilled over or near receiving water.
In 1978,  0.6 percent of the oil  and 3.5 percent of the hazardous  substances
entering  waterways was due to railroad accidents.

D.4.2  Product Storage

      The  storage of crude oil  and refined petroleum products contributes a
very small  amount to the nation's air and water pollution.  Approximately
three percent  of the nationwide volatile organic compound emissions to the
atmosphere are from petroleum storage.   There are virtually no air pollu-
tants released from natural  gas storage.  Petroleum products are  stored at
refineries,  marketing  terminals, tank farms,  and major end users' facili-
ties, such as  utility  plants and airports.   Emissions from storage tanks
occur from breathing losses  around tank seals and working losses  from tank
filling and  unloading.  Products having major pressures ranging from 1.52
to 9.1 psia  account  for the  greatest amount of emissions,  with gasoline
accounting for over 50 percent (Reference 33).  Crude oil  storage accounts
for  17 percent  of the  emissions.   Synfuel  product emissions will  also
depend on  vapor  pressures  and, based on prelimnary information, are for the
most part  equivalent to emissions  from  petroleum products.
                                     D-50

-------
    During  1977,  leaks  and  spills  from storage facilities accounted for
15,780 barrels of  oil  or 4.7  percent  of all  oil  products entering U.S.
waterways  from accidents or  incidents.   Storage of hazardous materials
accounted  for 0.1  percent of  all  hazardous materials spilled into water-
ways.  Waste waters  associated with crude oil  and product storage are
mainly in  the form of  emulsified  oil  and suspended solids.  During storage,
the  water  and suspended  solids in the crude oil  separate, forming a bottom
sludge below the  oil  layer.   As the water layer is drawn off, emulsified
oil  is often lost  to the sewer system and is high in chemical oxygen
demand.   Intermediate  storage is  frequently the source of polysulfide and
iron sulfide suspended solids.  Finished product storage can produce high
biochemical  oxygen demand and alkaline waste waters.  The properties of
synfuel  products  will  need to be  characterized to assess this after
products are drawn off from the tanks.   Tetraethyl lead used as an anti-
knock  compound  and having toxic properties can also contribute to waste
steams;  however,  the amount of this compound is decreasing because of the
requirements for  unleaded gas.  Tank cleaning can contribute large amounts
of oils, COD,  and suspended solids from petroleum products and may do the
same with synfuels,  depending upon their constituents.

     As  crude  oil  storage tanks are being modernized, waste  waters will  be
reduced  because of the  use of mixed crude storage tanks and  strict
specifications  on bottom sediment  and water.  The increased  use of drying
processes preceding  product finishing can significantly  reduce the water
content  of the  product, thereby minimizing the quantity of waste water  from
finished product  storage.  This will be of benefit not only  to storage  of
petroleum products but to synfuels as well if the latter  products are
similar  in composition to petroleum.


                                 REFERENCES

     1.    Energy Information Administration, Annual Report to Congress,
          Volume I,  1979.

     2.    Congressional Research Service, National  Energy Transportation
          Volume I - Current Systems and Movements, May  1977.

     3.    Association of Oil  Pipelines,  Shifts  in Petroleum  Transportation,
          1977.

     4.    Energy  Information  Administration,  Energy Data  Reports,  Petroleum
          Refineries, Annual, January  1,  1978.

     5.    National Petroleum  Council,  Petroleum Storage and  Transportation
          Capacities  -  Pipelines,  Volume III,  December  1979.

     6.    National Petroleum  Council,  Petroleum Storage and  Transportation
          Capacities  -  Executive Summary,  Volume I,  December 1979.
                                    D-51

-------
 7.   U.S. Department of Energy, Petroleum Supply Alternatives for the
      Northern Tier and Inland States Through the Year 2000. Vol. 1
      October 31, 1979.	

 8.   Energy Information Administration, Energy Data Reports, Petroleum
      Statement, Monthly, November 1979.                            ~~

 9.   National Petroleum Council, Petroleum Storage and Transportation
      Capacities - Waterborne Transportation. Volume V, December 1979.

10.   National Petroleum Council, Petroleum Storage and Transportation
      Capacities - Tank Cars/Trucks. Volume IV, December 1979.

11.   Energy Information Administration, Energy Data Reports. Petroleum
      Statement. Annual, 1978.                                ~

12.   National Petroleum Council, Petroleum Storage and Transportation
      Capacities - Inventory and Storage, Volume II, December 1979.

13.   Energy Information Administration, State Energy Data Report.
      April 1980.	

14.   National Petroleum Council, Petroleum Storage and Transportation
      Capacities - Gas Pipeline, Volume VI, December 1979.

15.   Adapted from Monthly Energy Review, EIA, U.S. DOE, February 1980.

16.   Energy Source Book, The Center for Compliance Information, 1977,


                                                        t
                                                        ibe

18.   The Condensed Chemical Dictionary, 9th Edition, 1977, p. 664.
17.    Arthur D. Little, Inc., 1978 Petrochemical Industry Profile -
      A Report to the Petrochemical Energy Group, September 5, 1979
19.   Dictionary of Scientific and Technical Terms, 2nd Edition, 1978
      McGraw-Hill.

20.   "Allocation Rules Could Hurt Petrochemicals". Chemical and
      Engineering News Journal, June 2, 1980, page 5.

21.   Arthur D. Little, Inc., The Petrochemical Industry and the U.SA
      Economy—A Report to the Petrochemical Energy Group, December,
      1978.

22.   "C&EN's Top Fifty Chemical Products and Producers Special
      Report", Chemical and Engineering News .  May 5,  1980,  pp.  33-37.


23.   Stanford Research Institute, Chemical Origins and Markets—-
      Product Flow Charts Tables of Major Organics and Inorganics,
      cFemical Information Services, Menlo Park, California, 1967.

-------
24.    Environmental  Protection Agency,  Draft  Environmental  Impact
      Statement—Benzene Emissions from Benzene Storage  Tanks,
      Background Information for Proposed Standards,  EPA-450/3-80-034a,
      September, 1980.

25.    Personal  Communication with Robert Torene, Department  of
      Commerce,  Bureau  of Census, Census of Transportation,  September
      8, 1980.

26.    Standard  & Poor's Industry Survey, 1980.

27.    National  Air Data Branch, U.S.  Environmental  Protection Agency,
      1977 National  Emissions Report, EPA-450/4-80-005,  March 1980.

28.    National  Air Data Branch, U.S.  Environmental  Protection Agency,
      Compilation of Air Pollutant Emission Factor: AP-42,  through
      supplement 10, February 1980.

29.    Transportation System Center, U.S. Department of Transportation,
      Transportation Safety Information Report, May 1980.

30.    Materials Transportation Bureau,  U.S. Department of
      Transportation, Pipeline Accident Summary, June 1980.

31.    U.S. Coast Guard, Polluting Incidents In and Around  U.S.  Waters,
      Calendar Years 1977 and 1978, January 1980.

32.    Federal  Railroad  Administration,  Accident/Incident Bulletin  No.
      147, Calendar  Year 1978, October  19/9.

33.    U.S. Environmental  Protection Agency, Evaluation of  Hydrocarbon
      Emissions  from Petroleum Liquid Storage,  EPA-450/3-78-012, March
      1978.
                                D-53

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E.I
E.2
E.3
E.4
                         APPENDIX E

                   PHYSICAL AND CHEMICAL

            CHARACTERIZATION OF SYNFUEL PRODUCTS



                     TABLE OF CONTENTS
PHYSICAL AND CHEMICAL CHARACTERIZATION OF SHALE
OIL PRODUCTS	
          1,
          .1,
          1,
          1,
        E.I.5
       Crude
       Shale
       Shale
       Shale
       Shale
Shale Oil .
Oil Derived
Oil Derived
Oil Derived
Oil Derived
Gasoline Stocks . ,
JP-5	,
Diesel Fuel Marine
Residual Fuels. . .
(DFM)
PHYSICAL AND CHEMICAL CHARACTERIZATION OF DIRECT
LIQUEFACTION LIQUIDS (SRC-II, H-COAL AND EDS). .
E-4

E-4
E-9
E-9
E-14
E-14
                                                            E-14
        E.2.1  Direct Liquefaction Oils	E-14
        E.2.2  Direct Liquefaction Naphtha 	   E-18
        E.2.3  Gasoline from Direct Liquefaction Processes   E-18
        E.2.4  No. 2 Fuel Oil from Direct Liquefaction  .  .   E-26
        E.2.5  Jet and Diesel Fuels from Direct
               Liquefaction	E-26
CHEMICAL CHARACTERIZATION OF INDIRECT LIQUIDS.
          3.1  Fischer-Tropsch Gasoline	
           E.3.1.1  F-T By-Product Chemicals Composition
           E.3.1.2  Tars, Oils and Phenols	
               Mobil-M Gasoline	
               Methanol	
E.3.2
E.3.3
                                       E-26

                                       E-26
                                       E-31
                                       E-31
                                       E-36
                                       E-36
CHEMICAL CHARACTERIZATION OF COAL  GASES	E-38
        E.4.1  SNG    	E-38
        E.4.2  Chemical Characterization  of  Low-/Medium-
               BTU Coal Gas   .  .          	         E-33
                             E-l

-------
                                    TABLES

                                                                    Page
Table E-l       Shale  Oil  and  Petroleum  Crude  Physical  Data
                Comparison  ....................   E-5

Table E-2       Shale  Oil  and  Petroleum  Crudes  Chemical  Data  ...   E-7

Table E-3       Range  of  Trace Elements  from  Oil  Shale  and
                Petroleum Crudes (PPM)   ..............   E-8

Table E-4       Chemical  Characterization  of  Heavy  Distillates
                Shale  Oil  and  Petro Crude .............   £-10

Table E-5       Shale  Oil    Gasoline Stocks Analyses  .......   E-ll

Table E-6       Inspections  of Hydrotreated and Reformed Gasoline
                from Pilot  Plant  Studies of Shale Oil  Upgrading.  .   E-12

Table E-7       Shale  Oil    JP-5  Analyses .............   E-13

Table E-8       Shale  Oil    DFM Analyses .............   E-15

Table E-9       Shale  Oil  Residual  Fuel  Analyses  .........   E-16

Table E-10      Physical  Properties of SRC II,  H-Coal  and EDS
                Raw Process  Liquids ................   E-17
Table E-ll       Chemical  Composition  of SRC  II,  H-Coal  and EDS
                 Raw  Process  Liquids ................   E-19

Table E-12       Physical  Properties of  Coal  Derived  Naphtha.  .  .  .   E-20

Table E-13       Detailed  Chemical  Analysis  of SRC  II,  EDS, and
                 H-Coal  Naphthas ..................   E-21

Table E-14       Detailed  Chemical  Analysis  of SRC  II,  EDS, and
                 H-Coal  Hydrotreated Naphthas ...........   E-22

Table E-15       Physical  Properties of  Gasoline  Produced from
                 Differenct Syncrude Feedstocks     ........   E-23

Table E-16       Comparison of Coal  Derived  Gasoline  Composition.  .   E-2-

Taole E-17       Gasoline  Comparison   Specifications,  Petroleum,
                 and  Coal-Derived  .................   E-25

Table E-18       Properties of No.  2 Fuel  Oil Refined from
                 Petroleun and Syncrude  ..............   E-27
                                     E-2

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Table E-19      Physical Properties of Jet/Diesel Fuels from
                Coal  Syncrude	E-28

Table E-20      Detailed Specification for Jet Fuel, and
                Diesel  Fuel	E-29

Table E-21      Comparison of Principal Unleaded Gasoline
                Specifications with Estimated Fischer-Tropsch
                Gasoline Properties   Case II	E-30

Table E-22      By-Product Chemicals Produced by Fischer-Tropsch
                Synthesis	E-32

Table E-23      Composition of Benzene Soluble Tars Produced in
                Synthane Gasification Process	E-33

Table E-24      Composition of Tars and Oils Produced by
                Gasification of Various Coals in Lurgi Gasifiers  .  E-34

Table E-25      Organic Composition of Lurgi Oil Produced at
                the Westfield Lurgi Facility 	  E-35

Table E-26      Estimated Composition of Phenol By-Product Stream.  E-31

Table E-27      Typical Properties of Finished Mob'il Gasoline.  .  .  E-37

Table E-28      Estimated Crude Methanol Composition 	  E-37

Table E-29      Typical SNG Composition (Dry)	E-38

Table E-30      Gaseous Species Analysis Summary:  Low-Btu
                Coal  Gas	E-40

Table E-31      Trace and Minor Element Compositions of Low-Btu
                Product Gas	E-41

Table E-32      Organic Compounds Identified from the Product
                Gas by SIM GC/MS	E-43
                                    E-3

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     This appendix  presents  available data  on the physical  and chemical
characteristics of  products  from  shale oil, direct and indirect coal
liquefaction,  and coal  gasification.

E.I  PHYSICAL  AND CHEMICAL  CHARACTERIZATION OF SHALE OIL PRODUCTS

     As part of DOD's  synthetic  fuel  development  program, 10,000 barrels  of
shale oil crude were  produced  at  Anvil  Points, Colorado, by the Paraho
process (direct heat  retort).   The crude was refined into synthetic
gasoline, JP-4, JP-5,  diesel  fuel  marine, and heavy fuel oil  at the Gary
Western refinery  in 1976.   The fuels  were shipped to numerous military and
private laboratories  for  specification tests, post-processing studies,
combustor tests,  engine tests, burner tests, and  full-scale tests.

     This program was  expanded in  1977 when the Standard Oil  Company of
Ohio (SOHIO) was  contracted  by the U.S.  Navy to refine up to 100,000
barrels of crude  Paraho shale  oil  into military transportation fuels.  The
objective of the  program  was  to  demonstrate that  conventional refining
technology could  be used  to  convert shale oil into stable, specification
military fuels  in sufficient  volume to support an extensive engine  testing
program.  Yields  of JP-5  and  diesel fuel marine (DFM) were to be maximized
while minimizing  the  yield  of  residual  fuel.

     The crude  shale  was  produced  by Paraho Development Corporation over
the three year  period  from  1976  to 1978.  The crude shale oil was refined
by Sohio's Toledo refinery  in  late 1978.

     As a result  of these programs, reasonably large amounts of data exist
on the  gross chemical  and physical characteristics of crude shale oil and
its products.   Much of the  work  on the initial 10,000 barrel  run has been
completed.  The testing of  the 100,000 barrel run is in progress and only
limited data are  available.   In  some  cases, the assessment of the
differences between synfuel  and  petroleum products is limited because of
the scarcity of comparable  data  on petroleum products.

     The following  comparisons use actual petroleum product data where
available or ASTM or  military  specifications where no data were developed.
Comparison to  ASTM  or  military specifications eliminates the problem of
selecting one  representative  petroleum product from the many that exist.

E.I.I   CRUDE SHALE  OIL

     Table E-l  compares nine  crude shale oil samples to four petroleum
crudes  of varying API  gravity.  The RO-1 to RO-4  shale oil  samples  were
from a  blind API  test  program.  The sources of those crude shale oils were
either  the Union  B,  Paraho  Direct, Paraho Indirect or Colony Semiworks.

     Because of its unique  nature, crude shale oil requires special
consideration  in  handling and  processing.  Compared to conventional
petroleum, shale  oil  has  several  deleterious characteristics (Reference 1):


                                     E-4

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                  TABLE E-1.  SHALE OIL AND  PETROLEUM  CRUDE  PHYSICAL  DATA COMPARISON
m
i
en
PHYSICAL PROPERTIES
Density (ASTMD-148-1)
at 153°F
Specific gravity @60°F
Viscosity (ASTM D-445)
SUS, 100 F
Viscosity, SUS, 130°F
Viscosity, (ATSM D-445),
SUS, 210°F
Pour Point (ASTM D-97), °F
Molecular weight (cryoscoplc)
Gravity, °API

DISTILLATION, VOLUME X
C, - 200°F
200 - 240
340 - 470
470 - 650
650+
IBP to 400°F
400 to 650
650 to 850
850+
IBP to 310°F
310 to 375
375 to 520
520 to 680
680 to 960
960+
(a)
IBP to 212 °F
212 to 302
302 to '(55
455 to 650
650 to 1049
1049+
CRUDE SHALE OIL5

0.9323
-
174.2
-
42.3
+85
274
-






6.07
27.99
25.33
39.66













RO-2<2>
0.9277
-
125.7
-
39.4
+80
265
-






7.20
30.17
34.31
27.66













RO-3<2>
0.9254
-
131.6
-
40.2
+65
272
-






9.91
25.87
28.92
34.63













RO-4
0.9393
-
107.2
-
38.1
+70
230
-






17.30
25.96
19.43
35.87













PARAHO /,
0 . SHALE*
_
0.9315
213
-
44.9
+85
-
20.4























DOW (3)
Tosor '
_
-
-
85.7
-
+75
-
20.7










5.2
4.54
12.64
30.85
32.57
26.84







PARAHO '
_
-
-
121.4
-
+85
-
20. i










1.17
1. 13
9.60
28.92
37.81
30.97







SUPERIOR(3)
TOSCO
.
-
-
105.5
-
+80
-
20.7










5.08
4.58
10.87
27.37
31.93
ji.04







OCCl-(3
DENTAL
'TOSCO
.
-
-
92 7
-
+50
-
19.3










6.30
4.53
13.64
33.07
31.73
24.37







P.FTRO FUM CFtUDFS , , . -
J. TEXASC
SOUR
CRUDE
.
-
43.1
-
-
-30
-
34.1























ARAB LA If*)
LIGHT
SAUDI
ARABIA
.
0.8545

-
-
-JO
-
33.4

















9.0
8.4
15.0
19. 8
32.5
13.6
ARABIA^
HEAVY
SAUDL
ARABIA





-30

28.2

















7.9
6.8
12.5
16.4
26. J
26.8
INDONESIA


1844


+ 57

20.6

i.5
i.7
4.9
12.9
78.9


















-------
     (!)  High  nitrogen  and  oxygen content
     (2)  Low hydrogen/carbon  ratio
     (3)  Low yield  of 650 F minus material  (30 vol.%)
     (4)  Moderate arsenic and iron content
     (5)  Suspended  ash  and  water.

     The  high nitrogen content is probably the greatest concern, as it is
an order  of magnitude  higher than that found in petroleum.

     Nitrogen compounds  are  known to poison  many petroleum processing
catalysts,  such as those used  in fluid bed catalytic cracking, naphtha
reforming,  and  hydrocracking.   In addition,  nitrogen compounds have been
found to  create stability problems in gasoline, jet, and diesel fuels.
Fuel-bound  nitrogen  will also  increase the NO  emissions from practically
any type  of combustor.   Finally, nitrogen compounds often have a peculiar
and offensive odor that  is difficult to remove.

     The  crude  shale oils have consistently  higher pour points than the
petroleum crudes,  including  the heavy crude  from Indonesia.  The specific
density of  crude  shale oil is  generally higher than petroleum crudes.
These facts are supported by the distillation data, which show greater
volume percentages  in  the higher boiling fractions.  Roughly 60 percent or
higher of the crude  shale boils above 650 F  compared to 40 to 50 percent
for two of  the  four  crudes shown in Table E-l.  Surprisingly, crude shale
oil is much less  viscous than  the heavy Indonesia crude even though the API
gravities are similar.   This is probably because of the high aromatic
content of  the  crude shale oil.

     Table  E-2  displays  the  elemental analysis of the crude oils shown in
Table E-l.  Only  sulfur  and  nitrogen data were available for most of the
petroleum crudes.  The sulfur  values for the shale oils are compatible with
the normal  range  of  sulfur values for petroleum crudes.  As noted earlier,
the nitrogen content of  crude  shale oils greatly exceeds that of most
petroleum crudes.  The nitrogen is generally believed to exist as
heteroatoms in  ring  compounds.  Fortunately, mild hydrotreating can reduce
the nitrogen content to  acceptable levels.

     Some trace element  (As, Na, K, V, Ni, Fe) data for shale oil and
petroleum crudes  are also contained in Table E-2.  More extensive data from
additional  shale  oil  and petroleum crudes and their products is found in
Table E-3.  In  crude shale oil, only the elements As, Fe, and Th are
present in  quantities  that exceed the amounts present in petroleum crude by
an order  of magnitude,  as shown in Table E-3.  Most of the elements are
present in  the  same  order of magnitude or less than in petroleum crudes.
It is noteworthy  that  the vanadium content of shale oils is 100 times less
than typical petroleum levels.  This finding could have a significant
effect on the sulfate  emissions from the combustion of crude shale oil.
The lower vanadium content of  crude shale oil  will probably lead to less
HpSO, formation,  because of  vanadium's catalytic properties.  The arsenic,
as weh 1  as most of the other elements, is readily removed during
hydrotreatment  (Columns  6 &  7).

                                     E-6

-------
TABLE E-2.  SHALE OIL AND PETROLEUM CRUDES CHEMICAL DATA









Chemical Properties

ELEMENTAL ANALYSIS
Carbon, Wt %
Hydrogen
Oxygen
Sulfur

Nitrogen

METALS, PPM
As
Na
K
V
Ni
Fe










R0-l('2

85.6
11.6
1.2
0.68

2.17


33
2.1
-
0.12
2.0
40










RO-2^2

85.1
11.5
1.2
0.69

2.04


42
2.5
-
0.10
1.3
46










RO-3«

85.4
11.6
1.1
0.81

1.82


47
2.9
-
0.54
1.3
4.9










RO-4^

85.1
11.0
1.1
0.80

2.05


55
3.1
-
0.55
2.4
43




i>>—

•=»-
>»-'
> to
fO •!-
Qj _Q
*T* (O
t-
C e£
•t— »^
(O 3
S- to
<: co

-
-
-
2.84

-


_

-
-
-
-



*^*H
CO
•-— *
fO
»r.

-------
              TABLE  E-3.   RANGE OF  TRACE  ELEMENTS  FROM OIL SHALE AND  PETROLEUM CRUDES  (PPM)
ELEMENTS
A1
Ag
As
B
Ba
Be
Ca
Cd
Co
Cr
Cu
F
Fe
Hg
Mg
Mn
Mo
Na
N1
Pb
Sb
Se
S1
Sn
Sr
Th
T1
V
Zn
Zr
S
011 Shale(7)
Reference
0.1 - 36

5 - 65
3 - 7
0.01 - 21
0.02
0.5 - 39
0.01 - 0.2
0.8 - 7
0.04 - 0.2
0.1 - 1.5
0.1 - 3
6 - 390
0.09 - 0.65
0.4 - 100
0.1 - 4
5 - 14
19
1.1 - 5.5
0.02 - 7.8
0.008 - 0.54
0.08 - 0.2
110



1 - 36
0.3 - 60
0.075 - 3
0.1
(2)
RO-1
0.5
<0.02
33


<0.02
2
<0.02
0.82
0.02
0.08

40
<3
1.04
0.11
0.03
2.1
2.0
0.05
<2
<2
1
0.2
0.013
2
<1
0.12
0.61

(2)
RO-2
2
<0.02
42


<0.02
11
<0.02
0.52
0.05
0.05

46
<3
3.7
0.46
0.02
2.5
1.25
0.20
<2
<2
5
0.2
0.07
2
1
0.10
0.79

(2]
RO-3
2
<0.02
47


<0.02
5
<0.02
0.10
0.06
0.08

4.9
<3
1.7
0.67
0.05
2.9
1.26
0.17
<2
<2
3
0.4
0.03
1.5
<1
0.54
1.9

(2!
RO-4
4
<0.02
55


<0.02
37
<0.02
0.60
0.07
0.28

43
<3
7.4
0.22
0.06
3.1
2.4
0.09
<2
<2
9
0.4
0.27
<1
3
0.55
1.1

(a;
Crude
Shale
4601
1.5
NO
29


NO
3.8
0.01
1.0
0.036
0.035

57
NO
0.1
0.092
0.07
1.1
3.2
0.06
ND
NO
7.4
<0.5
0.034
ND
<0.4
0.28
1.7

(8)
Hydro-
treated
4606
0.040
<0.01
<0.5


<0.005
0.052
ND
ND
0.010
0.030

0.24
ND
0.002
<0.005
ND
0.15
<0.05
ND
ND
ND
<0.3
<0.5
0.003
ND
ND
<0.03
0.064

Heavy "
Fuel Oil
From
Shale
011 <9)
0.68





3.5

0.75
0.11
0.19



0.53
0.03
0.054
3.1
2.5
0.15


2.6
0.44


0.096
0.76
<0.3
0.035
sU8)
on
JP-5
(4608)
0.048
<0.02
0.5


<0.01
ND
<0.02
<0.09
ND
<0.02

<0.01
ND
ND
<0.02
ND
0.14
ND
<0.06
ND
ND
ND
ND
ND
ND
ND
NO
<0.02

(8)
Shale
011
JP-8
(4609)
0.056
<0.02
ND


<0.01
ND
<0.02
<0.06
ND
<0.02

<0.01
ND
ND
<0.02
ND
0.06
ND
<0.06
ND
ND
ND
ND
ND
ND
ND
ND
0.02

(10)
Domestic
Crude
011
(Avg)


0.17
0.19
0.17


ND


ND


ND

0.46


38.7

0.17
ND

2.8



15.7
2.8

(ID
No. 6
Fuel
011
19
1.0



<0.15
120
<0.15
2.3
1.2
1.8

16
NR
25
0.4
7.0
141
37
0.8
<0.15
0.9
21
<0.2
1
<0.1
1
48
4
0.8
(10,12
Petroleum
Residual
011


0.3
0.11
0.67
0.09

2.0
2.2
1.8
10.0

7.3
0.02

2.1
2.3
50.1

0.04
0.04
0.14




5.41
57.1
0.19

Petrol eunf ^
Residual
011
75
0.2
0.02
0.3
4

120
0.2
3
3
2.5

150
0.01
75
2.5
0.25
35
120
2
0.02
1
300
0.3
0.1
0.2
0.4
180
4
2
I
00
         a. Based the elemental and1.yr.1s of the ash and 0.008% ash content

-------
     Additional chemical characterization data are contained  in  Table  E-4.
The aromatic content of the 410 -698 F distillate from  shale  oil  was about
29 weight percent.  Similar distillate products from two  petroleum  crudes
had only 18 percent or less aromatics.  One important difference  between
crude oil and crude shale oil is the presence of significant  amounts of
olefins in crude shale oil.  Olefins are more reactive  than paraffins  and
tend to make crude shale oil less stable than crude oil.

E.I.2  SHALE OIL DERIVED GASOLINE STOCKS

     Gasoline was produced from both the 10,000 barrel  and 100,000  barrel
retort and refining efforts under the DOD shale oil program.   Table E-5
compares the two shale oil gasolines produced to military specification and
to common regular leaded and unleaded gasolines.  The Toledo  run  was not
reformed; it would need to be, to be used.  The Gary Western  run  was
reformed, but still had a low octane rating and would not be  suitable  for
use.  The data in Table E-5 indicate that the Reid Vapor  Pressure (RVP) of
the reformed shale oil gasoline is slightly higher than that  of  the regular
leaded and unleaded gasolines as well as the military specifications.
Other data generated by Shelton (Reference 35), however,  indicate RVPs  of 7
to 15 for petroleum gasolines.  Hence, it is not clear  whether there would
be significant differences in fugitive emissions between  the  reformed  shale
oil gasoline and other gasolines.  Table E-6 provides more details  on  the
results of reforming on the chemical make-up of the gasoline.  While the
Research Octane Number (RON) is increased and nitrogen  contents  decreased,
the aromatic contents increased dramatically at the expense of the
naphthenes.  The presence of large amounts of aromatic  compounds  might
affect the properties of shale oil gasoline and will certainly affect  the
consequences of shale oil gasolines on health.

E.I.3  SHALE OIL DERIVED JP-5

     The results of the DOD 10,000 barrel (Gary Western)  and  100,000 barrel
(Toledo) refining of Paraho shale oil for JP-5 fuels are  reported in Table
E-7.  The Gary Western run received only clay treatment while the Toledo
run was both hydrotreated and acid/clay treated.  Note  that the  thermal
stability of the untreated Toledo fuel is poor.  However, after  the
nitrogen compounds are selectively removed by acid treating,  the  fuel's
stability as determined by gum and JFTOT  (ASTM D-3241)  measurements is  very
good.  In addition, storage stability characteristics of  the  fuels  were
tested by aging the material for 1 month at 140 F and then  repeating the
JFTOT ana gum tests.  The aging test  results for a composite  sample of all
treated JP-5 produced at the refinery indicate that this  fuel has very good
storage  stability properties.

     Compared to a typical JP-5 fuel the  shale jet fuel  has  a slightly
lower distillation curve, but one within military specifications.  Aromatic
content  of both the finished Toledo  and Gary Western  runs is  higher than
the typical JP-5 fuel, but generally within military  specifications.   Trace
element  composition of the JP-5/8 fuels appears to be quite  low  (Table E-3)
Arsenic, at 0.5 ppm,  appears to be the element with the highest

                                     E-9

-------
    TABLE E-4.   CHEMICAL CHARACTERIZATION  OF  HEAVY DISTILLATES
                 SHALE OIL AND PETRO  CRUDE
Oil Samples
Paraho Oil Shale14
Saturates
Olefins
Aromatics
Wt %
Whole
Oil

41
27
24
Superior TOSCO Oil Shale14 j
Saturates i, 39
Olefins : 29
Aromatics
Union "B" Oil Shale'5
Saturates
\ 30

19
Olefins ! 7
Aromatics
Nigeria, Bass River Crude Oil
Saturates
Olefins
Aromatics
41




California (Huntington Beach) Crude^ ,

Paraffins
Naphthene
Aromatic




Wt % of Total Hydrocarbon Fraction
410-698 698-985 <995°F
Distillation Distillation Residue

30
25
28

26
33
29






^
17.8a

b

??b
17

35
24
35

32
22
42














21
12
46

29
20
48













J400-650°F

D482-572°F
                                  E-10

-------
                   TABLE  E-5.   SHALE OIL GASOLINE STOCKS ANALYSES
Property
API Gravity
RVP, psi
Distillation (D-86)
IBP, °F
10
50
90
EP
% Recovered
%Residual
Paraffins
Naphthenes
Alkyl benzenes
Indans + Tetralins
Aroma tics
Olefins
Nitrogen, Wt %
Research Octane, Clear
Sulfur, Wt %
Toledo 0>»a
54.7
5.6

200
249
283
317
370
98.0
1.0
49.95
34.0
15.20
0.51
0.32

0.078
47(2)

Gary Western (9)
	
11.9

86
136
192
342
395
—
1.0
44.0
8
—
—
—
36
0.03
87
0.007
Regular ,,,
Leaded GasolinelbJ
61.8
9.6

87
123
209
342
412
98
1.0
—
—
—
—
—
23
0.49
93.4
0.01
MIL-G-3056C(9)

7 - 9

—
131 - 158
194 - 239
293 - 356
—
—
2 (Max)
—
—
—
—
—
—
—
95
0.15
Unleaded Gasoline^ '
58.2
9.2

87
128
225
342


1.8
—
—
—
—
—
29
0.05
91.0
0.003
a Unreformed

-------
   TABLE  E-6.   COMPARISONS OF HYDROTREATED AND REFORMED GASOLINE--,
               FROM PILOT PLANT STUDIES OF SHALE OIL UPGRADING
    Property                Gasoline Hydrotreated     Gasoline Reformed
	     C6   157°C	C6   157°C

 API  Gravity                        57.5                    50.5
 Research Octane Number             47                      93
 Paraffins,  Vol   %                  58.9                    42.1
 Naphthenes, Vol  %                 30.7                     6.8
 Aroma tics,  Vol   %                  10.4                    51.1
 H/C  Molar                           2.03                    1.61
 Nitrogen, PPM                     400                       0.5
                                E-12

-------
                     TABLE E-7.   SHALE OIL    JP-5 ANALYSES

Untreated JP-5
API Gravity
Flash, °F
Freeze, °F
Existent gun (D-381) Mg/lOOcc
Distillation (D-86)
IBP, °F
10
50
90
EP
Nitrogen, Wt %
Paraffins, Vol %
Naphthenes, Vol %
Aromatics, Vol %

Treated JP-5
API Gravity
Nitrogen, PPM
TAN, mg KOH/gm
WSIM
Existent gum Mg/lOOcc
JFTOT at 500°F
Visual
Max Spun Rate
Max rP mm Hg
Paraffins, Vol "'=
Naphthenes, Vol %
Aromatics, Vol ^

(9)
Gary Western
44.4
140
-30
144.2

342
376
426
492
514



25.8
a
Gary Western
44.4


58
113.2






25.6

_ . .0)
Toledo
42.7
158
-57
Not Run

370
384
400
436
480
0.29
42.5
36.0
21.5
b
Tol edo
43.6
0.5
0.005
95
1.4

1
0
0.5
43.7
34.5
21.8

Mil Spec
API gr <48
140 Min
-51 Max
7.0 Max

R
401 Max
R
R
554 Max
—
—
—
25% Max

Mil Spec
36
-------
concentration.   No  petroleum based analyses were available, but that level
of arsenic should not  be  significant.

E.I.4  SHALE  OIL DERIVED  DIESEL  FUEL  MARINE (DFM)

     The Gary Western  and Toledo refinery DFM runs are compared to military
specifications  in Table E-8.   The improved nitrogen removal possible by
hydrotreating and acid/clay  treatment  is  evident from the comparison
between treated  Gary  Western and Toledo runs.  It is expected that the
product should  have good  combustion properties because the high octane
number (50.1) and the  hydrogen weight  percent (approximately 13 percent).

E.I.5  SHALE  OIL DERIVED  RESIDUAL FUELS

     The residual fuel  produced  during the Toledo run met all military
specifications  (except  for pour  point) for a low sulfur,  high power No. 6
fuel oil.  The  sulfur  concentration was well below the military
specification and that  of a  typical No. 6 fuel oil (Table E-9).  Arsenic
levels and trace metals are  at or below petroleum residual fuel analyses
(Table E-3).  In particular,  the vanadium content is very low and should
lead to lower H^SO^ emissions during  combustion.

E.2  PHYSICAL AND CHEMICAL CHARACTERIZATION OF DIRECT LIQUEFACTION
     LIQUIDS  (SRC II,  H-COAL, AND EDS)

     The following  sections  discuss the physical and chemical composition
of raw and hydrotreated direct liquefaction products.

E.2.1  DIRECT LIQUEFACTION OILS

     All three  of the  major  direct coal liquefaction processes, SRC II,
H-Coal, and Exxon Donor Solvent  (EDS), can be run to produce different
process oils.   For  example,  H-coal can be run in a boiler-fuel mode
(maximizing residuum)  or  in  a syncrude mode (wide range boiling fractions
production).  This  section presents data  for the syncrude mode (H-coal),
raw process liquid  (EDS), and whole process oil  (SRC II).  The physical
properties of these three liquids are  shown in Table E-10, and are compared
to Arabian light and  heavy crudes.  Because coal type can affect the
product, information  on SRC  II liquids from Illinois No.6  (high sulfur
coal) and Wyodak (low  sulfur coal) are included.  In general, the syncrudes
from the three  processes  are much more dense than the petroleum crudes.
However, because the  viscosities of the syncrudes are much lower than the
petroleum crudes, there should be no  pumping problems.  The raw syncrudes
also exhibit a  low  pour point, which  will  aid in handling and transfer
operations.

     While the  sulfur  content of the  raw syncrudes would  classifiy them as
a  low sulfur  feed,  it  and the high nitrogen levels are too high for the
catalysts used  in later refinery steps.  Before use, the  raw syncrudes will
be upgraded via  hydrotreating to remove the sulfur and nitrogen.   The
hydrotreated  syncrudes  for SRC II  and  H-coal are also listed in Table E-10.

                                     E-14

-------
                TABLE E-8.   SHALE  OIL   DFM ANALYSES
Untreated DFM
API Gravity
Pour, °F
Flash, °F
Distillation (D-86)
IBP
10
50
90
EP
% Res
Nitrogen, Wt %
Cetane Index
Treated DFM
API Gravity
Carbon, Wt %
Hydrogen, Wt %
Nitrogen, ppm
Paraffins, Vol %
Naphthenes, Vol %
Aromatics, Vol %
TAN, Mg KOH/gm
Cetane Index
ASTM 2274 Mg/100 cc
(ace. Oxid. test)
Distillation (D-86)
IBP
10%
50%
90%
EP
Gary Western






(9)
Gary Western v '
33.2
86.4
12.62
2800
34 35
55.2

446
525
599
662
702
Toledo(1)
36.8
0
162

396
456
512
562
582
1.0
0.33
52.5
Toledo(a)
38.1
86.27
13.28
3.9
45.5
25.5
29.0
0.010
50.1
0.51


Mil Spec(1)
R
20 Max
140 Min

R
675 Max
725 Max
3 Max

45 Min
Mil Spec
R
—
—
0.30 Max
45 Min
2.5 Max


a Hydrotreatment + acid/clay
                                 E-15

-------
               TABLE E-9.   SHALE  OIL RESIDUAL FUEL ANALYSES
Property
API Gravity, 60°F
Pour Point, °F
Rams Bottom Carbon, Wt
Asphaltenes, Ut
Vis. at 210°F, CST
Distillation (D-2887)
IBP, °F
10
50
90
EP
Carbon Wt ^
Hydrogen, Wt ~'*
Nitrogen, Wt %
Oxygen, %
Sulfur, %
Saturates, Vol %
Aromatics, Vol %
Iron, ppm
Arsenic, ppm
Vanadium, ppm
Sodium, ppm
Potassium, ppm
Gary
Western
30
90
—








85.8
11.3
1.4
0.992
0.5







Toledo(l )
29.6
80
0.096
0.059
2.00

331
582
732
900
1032
86.71
12.75
0.44
182 ppm
20 ppm
57. la
42.9s
0.10
0.4
0.02
0.6
0.6
No. 6 nn
Fuel Oil u u
25.0
95
—
—
—

—
—
—
—
—
87.02
12.49
0.23

0.24







Fuel Oil,
Burner , .
MIL-F-859F ^>
11.5 (min)
15 (max)
—
—
—

—
—
—
—
—
—
—
—
—
3.5 (max)
—
—
—
—
—
—

Pilot plant studies
                                    E-16

-------
TABLE E-10.
PHYSICAL PROPERTIES OF SRC II, H-COAL AND EDS
RAW PROCESS LIQUIDS
Property






Gravity, API 0 60 F
Kinematic Viscosity I? 100 F. CSt
Pour Point, F
H2 Consumption (scf/bbl)
Molecular wt.
Ultimate Analysis
Carbon, wt%
Hydrogen, wt%
Sulfur, wtS
Nitrogen, wU
Oxygen, wt*
Ash, ppm.
Distillation Temperature, °F
I. 8. P. (D-86)
10
50
90
EP
St./5 (Simulated GC), F
10/30
50
70/90
95/99
SRC 11
Whole
Process
Oil (Ib)



18.6
2.196
<-80
-
132

84.61
10.46
0.29
0.85
3.79
40

154
281
438
597
850
56/189
241/379
424
473/562
642/820
SRC II
High
Severi ty
Hydrptreat-
Ing 09)



39.3


3100


86.2
13.8
5 ppm
0.25ppm
40 ppm







65/181
215/276
365
410/499
546/648
SRC II
Intermed-
iate
Hydrotreat-
ment (19)



32.7


2000


88.2
11.8
21 ppm
52ppm
680ppm







66/179
213/286
380
422/528
581/705
Wyodak
H-coal
Syncrude
(20)



35.1
1.225

-
~130

86.20
12.74
0.041
0.17
0.85
<20






53/156
173/261
354
429/535
602/785
Wyodak
H-coal
Medium
Severity
Hydrotreat-
treatment
(20)

41.4

-45
838




0.64ppm
0.65ppm













H-Coal
Illinois
No. 6
Syncrude
(20)



25.8
1.645

-
147

86.96
11.39
0.32
0.46
1.80
90






56/177
213/333
404
476/588
654/765
H-Coal
Illinois
No. 6
High Sev-
erity
ydrotre-
atment
(20)
35.3


1613




5.4ppm
O.lSppm













EDS
Raw
Liquid
Product
(21)
\ ^ • )


3.5


-


89.22
8.66
0.49
0.71
1.93


403



930





Arabian
Light
Saudi
Arabia
(4'>
VH l


33.4
6.14
-30





1.8





190
650
1050






Arabian
Heavy,
Saudi
(4)



28.2
18.9
-30





2.84





215
750
1200







-------
Clearly, even moderate  hydrotreating  is  capable of reducing the nitrogen
levels to 50 ppm.  Hydrotreatment  also reduces the fraction of high boiling
point materials,  as  a  result  of converting aromatic compounds to
naphthenes.  Table E-ll  contains  information  on the chemical  composition  of
the raw and hydrotreated SRC  II syncrudes and the hydrotreated H-coal  and
EDS process liquids.   Hydrotreatment  can virtually eliminate the aromatic
content of SRC  II syncrude; while  this might  be a control  method for
hazardous aromatics  (SRC II contains  9 percent phenols),  process economics
will probably preclude severe hydrotreatment.  Studies are needed to
determine what  degree  of hydrotreatment  is required to reduce hazardous
aromatic compounds to  an acceptable level.

E.2.2  DIRECT LIQUEFACTION  NAPHTHA

     An important intermediate product is the naphtha feedstock obtained
from the direct liquefaction  processes which  will be used  to produce
transportation  fuels.   Table  E-12  contains the physical  data on the
coal-derived naphtha as  received and  after hydrotreating.   Hydrotreatment
raises the API  gravity slightly, and  almost entirely removes the sulfur and
nitrogen content  of  the naphtha.   While the aromatic content is reduced,
the olefinic fraction  is removed even under mild (500-800  SCF H^/bbl)
hydrot reatment.

     A detailed look at the change in the chemical composition of the
naphthas before and  after hydrotreating is given in TaMes E-13 and E-14.
Before hydrotreating,  the polar fraction contained significant amounts (3.9
percent) of phenol.  After  treatment, the polar fraction  is removed.  Based
simply on the known  toxicity  of phenols, one would expect  a reduced level
of hazard associated with the hydrotreated naphtha.

E.2.3  GASOLINE FROM DIRECT LIQUEFACTION PROCESSES

     The naphtha  feedstock  discussed  in Section 2.2 is not suitable for
direct use as a gasoline because of its low octane number (40-70).  Another
step, reforming,  is  required  to produce a commercial-grade gasoline.  Table
E-15 shows the  results of reforming the naphthas previously discussed. The
aromatic content  (Table E-16) was  dramatically increased  at the expense of
the naphthenes.  A high (91-99) Research Octane Number was obtained.
Compared to the API  standard  for petroleum gasoline, the  direct
liquefaction gasolines have more aromatics and naphthenes  and less
paraffins.  Furthermore, the  SRC gasoline has more benzene and
hydroalkylaromatics  than the  petroleum gasoline.  The extreme case was the
H-coal sample (636/220-5),  which contains 62 weight percent of C8 or higher
alkylbenzenes.   Table  E-17  provides an overview of the results of reforming
the naphthas to gasoline.   The specific composition of the chemical classes
may be different  as  noted above for the aromatics, but in  general they are
similar to the  petroleum-based gasoline.
                                     E-18

-------
                             TABLE  E-ll.
CHEMICAL  COMPOSITION  OF  SRC  II,  H-COAL AND EDS
RAW PROCESS LIQUIDS
PI

10
          Paraffins (total)
          Nflphthenus (total)
          Monocyeloparafflns
          B1cycloparaff1ns
          Trlcycloparafflris
          Aromatic!, (total)
          Alkylbenzer.es
          In denes and te
          Dlnapthenebenzenes
          Napthalenea
i"t 1 r»« 1 U¥

ji)
tal)
'Ins
5
rii
»D

ralln?.
nes

SRC II Whole,,...
Process Oil UB'
WOW- 3666
(1.1)
(10.2)
11.9
8.1
19.9
(55.2)
15.7
26.1
3.7
9,4
SRC II High
Severity (]g>
Hydrotreatment

(3.3)
(93.2)



(3.9)




SRC II
Intermediate
Severity t20'
Hydrotreatment
(1.5)
(16.8)



(18.7)




WYODAK
H-Coal (20)
Medium Severity
Hydrotreatment
(15.3)
(73.2)



(11.5)




H-Coal
Illinois No. 6 .
High-Severity (ZO)
Hydrotreatment
(7.0)
(74. 5)



(18.5)





-------
                              TABLE E-12.   PHYSICAL  PROPERTIES  OF COAL-DERIVED NAPHTHA
Property
Sample No.
API (? 60 F
Sp. Gr. & 60 F
Distillation ASTM D-86
IBP, F
57
10%
20%
30%
40%
50%
60%
70%
80%
90%
95%
EP F
1 Over
Hydrogen, Wt %
Carbon, Wt %
Sulfur, Wt ppn.
Nitrogen, Wt ppm
Oxygen, Wt ppm
Chloride, Wt ppm
FIA, Vol %
A
P&N
M S Hydrocarbon Types, Vol %
Aromatics/Polars
Naphtheres
Paraffins
Olefins
Bromine Index
RON, Clear
N Jet Gum, m&/100 ml
SRC PROCESS
As Received
3777-1
49.7
0.7809

107
134
157
188
209
226
243
261
279
292
316
346
367
97.5
12.91
85.87
4400
5140
7814
195

-
-
*
23.0
37.1
31.5
8.4k
30. Ob
80.8
12.0
H2 Consumption (SCF/BBL) N/A
NAPHTHA (21>
Hydrotreated
3777-2
52.0
0.7711

136
163
180
J96
209
220
233
249
270
289
311
330
388
98.5
13.66
86.00
0.22
0.8
359
3.8

18.8
81.2

22.0
52.8
25.2
_
101.0
70.9
-
EDS PROCESS
As Received
3531-7
38.4
0.8328

142
178
208
244
268
286
302
316
319
339
348
-
380
-
11.80
86. Z4
9,978
2,097
13,700
18

-
-
r
34.0
42.9
13.2
9.9h
39. b
83.2
44.0
560 N/A
NAPHTHAS*22^
Hydrotreated
3531-12
44.1
0.8058

202
215
226
237
250
264
287
305
322
336
351
360
374
98.6
13.13
86.18
0.1
0.2
98.0
1.0

20.1
79.9

21.62
65.48
12.90
.
124.0
64.5
-
850
H-COAL PROCESS
As Received
3531-1-2
43.7
0.8076

132
170
189
215
233
251
260
292
312
328
251
373
396
99.0
12.80
85.90
1289
1930
5944
23



H
22.8
55.5
16.2
5.5k
19. 3 b
80.3
-
N/A
NAPHTHA <23)
Hydrotreated
3531-4
46.8
0.7936

153
185
199
217
231
246
263
284
306
329
352
367
393
99.0
13.59
86.45
3.9
0'.63
34
4




17.6
63.4
19.0
-
296
66.8
-
480
I
ro
o
       a Includes  6.82 Polars
         Bromine nun her
       c Includes  8.9 , Polars
Includes 4.2% Polars
5.2/0.0 wt/Vol-X not shown

-------
                                      TABLE  E-13.
DETAILED CHEMICAL  ANALYSIS OF  SRC  II,  EDS, AND
H-COAL  NAPHTHAS
Series
CnH2n+2
r u
CnH2n

r u
V2n-2
CnH2n-4

CnH'n-6
CnH2n-8
CnH2n-10
CnH2n-12

CnH2n-5N
CnH2,i-4°
Cnh2n.-6°
CnH2n-7N
CnH2n-4S

CnH2n
CnH2n-2
CnH2n-4

Hydrocarbon Types
Paraffins
Naphthenes
Monocycloparaffins
Gyclopentanes
Cyclohexanes
Bi , Dicycloparaffins
Tricycloparaffins
Aromatics
Alkyl benzenes
Indanes/Tetralins
Dlnaphthenebenzenes
Naphthalenes
Polars
Pyri dines
Furans
Phenols
Naphthenopyri dines
Thiophenes
Olefins3
Monoolefins
Diolefins and/or Monocycloolefins
Triolofins and/or Dicycloolefins
Total
SRC II Naphtha
Wt %
27. &

28.4
-
-
7.1
1.0

17.4
0.7
<0.1
<0.05

3.0
-
4.5
Trace
1.6

1.9
5.1
1.4
100.0
(3777-1) f21)
Vol %
31.5

28.9
-
-
7.2
1.0

15.6
0.6
Trace
Trace

2.3
-
3.2
Trace
1.3

2.1
5.0
1.3
100.0
EOS Naphtha
Wt %
11.3

-
9.8
14.1
10.9
7.4

17.5
8.7
0.5
Trace

-
Trace
9.1
0.1
1.5

2.3
5.4
1.4
100.0
(3531-7)'221
Vol %
13.2

-
10.4
15.0
10.5
7.0

17.0
7.9
0.4
Trace

-
Trace
7.4
0.1
1.2

2.6
5.8
1.5
100.0
H-Coal Naphtha v
(3531- 1-2- t23)
Vol %
16.2

48.1
-
-
7.2
0.2

12.7
5.8
-
0.1

0.8
.
3.1
-
0.3

1.3
3.7
0.5
100.0
ro
           aThe  total  olefin number was obtained by Si02 separation, but the mono-, di-, tri-olefin split  is estimated  since no calibration coefficients are
              available.

-------
                         TABLE E-14.
DETAILED  CHEMICAL ANALYSIS OF SRC  II,  EDS, AND

H-COAL  HYDROTREATED  NAPHTHAS
ro
ro
Product Distribution
C3
C4
n-Pentane
Isopentane
Cfi Plus
Total
MS Analysis of Ce Plus Fraction
Hydrocarbon Types
Paraffins
Naphthenes
Monocycloparaffins
Bi, Dicycloparaffins
Tricycloparaffins
Aroma tics
Al kyl benzenes
Indans, Tetralins
Naphthalenes
Total
Hydrotreated SRC- 1 1 Naphtha
(3777-2)
Wt-% Vol-%
0.1 0.1
1.2 1.6
2.4 2.9
0.9 1.1
95.4 94.3
100.0 100.0
Vol-%
25.20

47.28
5.57
0.0

21.53
0.42
0.0
100.00
Hydrotreated EDS Naphtha
(3531-12)
Wt-% Vol-%
0.4 0.5 >
0.1 0.1 )
99.5 99.4
100.0 100.0
Vol-%
12.90

50.15
15.33
0.0

17.82
3.80
0.0
100.00
Hydrotreated H-Coal Naphtha
(3531-4)
Wt-% Vol-%
1.8* 2.4*

98.2 97.6
100.0 100.0
Vol-%
15.96

55.02
9.49
0.09

16.54
2.83
0.07
100.00
         Includes 0.4 wt/Vol-% of cyclopentane.

-------
                          TABLE  E-15.
PHYSICAL PROPERTIES OF GASOLINE PRODUCED FROM
DIFFERENT SYNCRUDE FEEDSTOCKSU7)
Raw Feed (Feedstock Fron
Synthetic Crude)
Refining Techniques
First Stage
Second Stage
Gasoline Sample Number
Conditions of Final Treatmer
p-p(base)' PS1
LHSV/LHSV(base)
CFR/CPR(base)
T-T(base)' F
Physical Properties
API Gravity 0 60°F
Octane No. . (RON Clear)
Ultimate Analysis
Hydrogen; wt %
Carbon; wt %
Sulfur; wt, ppm
Nitrogen; wt, ppm
Oxygen; wt, ppm
FIA Analysis, Vol %
Aroma tics
SRC-II Naphtha'21
(3477-2)

Hydrotreating
Flatformed
636/335-2
t
0
1.40
-87

42.1
94.5
10.91
87.61
0.1
0.1
183
66.0
Olefins I 0.0
Paraffins & Naphthenes
Distillation, Temperature °F
IBP
10'.
5Q%
901
EP
32.9
158
183
247
330
411
) EDS Naphtha(22)
(3531-7)

Mild Hydrocr.icking
Platformed
i
1
636/321-3
0
1.54
-85

43.9
96.0
12.01
88.73
0.1
0.3
327
37.1
0.0
60.7
144
17J
255
344
382
H-Coal Gas-Oil (18)
(96-3330A)

Mild Hydrocracking
Series Flow 2nd
Stage Hydrocracking
536/678
-500
1.0
1.18
47-49

51.8-53.4
91.5

---
11.7-32.0
0.1-1.0
91.5-93.6
29.1-34.3
0.0-0.0
65.7-70.9
82-107
122-127
244-232
350-359
385-393
H-Coal Gas-Oil (1Q)
(9C-3330A)

Heavy Hydrocracking
Simple 2nd Stage
Hydrocracking
601/749-751
-500
0.725-1.45
1.25
20-50

48.8-51.0
---

...
...
...
...
23.6-35.7
0.0-0.0
64.3-76.4
30-70
77-158
215-242
320-340
365-459
(2&\
H-Coal Gas-Oil u '
(37-1117/8)

Moderate Hydrotreating
Fluid Catalytic
Cracking
593/255-1,2,3,4,5
-10
1.03-1.56
2-47

43.1-45.2
95.5-96.9

—
..-
...
---
45.2-507
4.2-6.2
44.5-49.5
120-130
157-161
230-245
344-336
410-422
H-Coal Naphtha (23)
(3531-1-2)

Moderate Hydrotreating
Platformed
636/2201'2'3'4'5
0
1.48
-57

35.3-36.9
97.7-99.8
10.74
88.92
...
—
...
	 	
	
-"
156-165
200-204
272-277
367-372
425-462
I
ro
CO

-------
                             TABLE E-16.   COMPARISON  OF  COAL-DERIVED  GASOLINE COMPOSITION^?)
Composition

Paraffins, Wt %
Naphthenej., Wt %
Monocycloparaff ins - C2~C,,
Dicycloparaffins
Aromatics, Wt %
Benzene
Toluene
Alkyl benzene Ca-C,,
o 1 J
Indans/tetral ins. Wt %
c8-cn
Naphthalenes, Wt %
C10"C12
Polars, Wt *
VS
Olefins, Wt %
Unidentified, Wt %

Gasol ine from
Petroleum (26)
Sample No. ~l
API Standard
56.8 a,b
2.4C
0.0
0.12
21.8
7.0
0.22

0.09
0.00
7.9
3.7
Gasoline from
SRC- 1 1 Naphtha
Hydrotreated(21 )
Sample No.
636/335-2
23.9 d«9
8.3
0.7
18.0
19.0
27.9
2.1

0.0
0.0
0.0
--
Gasoline from
EDS Naphtha
Hydrocracked
8 Platformed'22
Sample No.
636/321-3
18.8 d,g
16.6
2.2
0.8
12.6
43.6
3.4

0.1
0.0
0.0
—
Mild Hydrocracking
Series Flow
Hydrocaracking^"
Samole No.
536/678-47
38.3 b.e
23.5
--
5.9
7.7
16.0
0.0

0.0
0.0
0.0
--
Gasoline from
H-Coal Gas-Oil
Heavy Hydrocracking (
Simple Hydrocracking
Samole No.
601/749-23
34.4 b,f
39.5
--
5.1
6.5
14.6
0.0

0.0
0.0
0.0
--
Gasol ine
from H-Coal
Naphtha Moderate
26)Hydrotreatment
Platformedfl22)
Sample No.
636/220-5
18.85 d,h
8.80
0.63

--
61.99
7.72

2.01
--
--
—
 I
ro
Includes 21.9% C4 X C& Paraffins


C4-C-|3 inclusive


Cg-Cg only


Volume %
                                              Includes 31.5% C4 X C& paraffins


                                              Includes 16.6% C4 X C5 paraffins



                                              Cg to C.jg indlusive


                                              C& + fraction only

-------
       TABLE E-17.  GASOLINE COMPARISON-SPECIFICATIONS, PETROLEUM, AND COAL-DERIVED^27)
Gasoline
Gasoline
Specifications
Petrol eum-deri ved
Gasoline
Coal -derived
Gasolines:
SRC-II Naphtha
EDS Naphtha
H-Coal Gas Oil
Treatment 1
Treatment 2
Treatment 3
Sulfur
Content
(wt ppm)
<1000
75-240

0.1
0.1
12-32
--
Distillation
End Point
(°F)
437
340-345

411
382
385-393
Gravity
(°API)
55-65
57-58.4

42.1
43.9
52-53
365-459 ! 49-51
i
Aromatics
(Vol %)
--
24-36

--
29-34
24-36
45-50
Olefins
(Vol %)
--
5-8

--
0
0
5-6
Saturates
(Vol %)
--
56-59

--
66-71
64-76
45-49
I
rv>
en

-------
E.2.4  NO. 2 FUEL OIL  FROM  DIRECT  LIQUEFACTION

     Acceptable blending  stock  for No.  2  fuel  oils  can  be  produced  from
crude by either single-stage  or two-stage hydroprocessing  techniques.
Results from EDS and H-coal crude  are  shown  in  Table  E-18.   The  physical
properties of  synfuel  blending  stock were similar to  those of a  petroleum-
derived No. 2  fuel  oil.   The  synfuels  have a low nitrogen  and sulfur
content; they  also  tend to  have slightly  lower  API  gravities and a  higher
flash point than required by  API  No. 2 fuel  specifications.   Distillation
temperatures at 90  percent  are  within  the acceptable  specification  range.

E.2.5  JET AND DIESEL  FUELS FROM DIRECT LIQUEFACTION

     H-coal and SRC  II syncrudes were  hydroprocessed  in the same plant as
jet fuel, diesel fuel, and  No.  2 fuel  oil  (Table E-19).   These synfuels  are
similar to the jet  fuel and No. 10 diesel  specifications shown in Table
E-20.  Heavier hydroprocessed products (not  shown here)  meet the No.  20
cold climate diesel  specifications.

E.3  CHEMICAL  CHARACTERIZATION  OF  INDIRECT LIQUIDS

     The  indirect  coal liquefaction products characterized in this  section
include gasoline from  Fischer-Tropsch  synthesis, gasoline  from the  Mobil-M
gasoline  conversion  process,  and methanol.  The Fischer-Tropsch  synthesis
unit also generates  a  stream  of oxygenated compounds  that  is described  in
the following  paragraphs.  The  term "indirect liquefaction" refers  to the
fact that coal is  gasified  before  the  liquids are produced.   Some of the
common gasifiers  (e.g., Lurgi and  Synthane)  generate  streams of  tars, oils,
and phenols, and these are  also described in the following paragraphs even
though they are produced  in relatively minor amounts.

E.3.1  FISCHER-TROPSCH GASOLINE

     Fisher-Tropsch  gasoline  is reported  to  be sulfur and  nitrogen  free
(Reference 31).  In  addition, the  aromatics  content as  shown in  Table E-21
(17 percent) is lower  than  that of typical petroleum  gasolines (24  to 33
percent), as shown  in  Table E-17.   The saturates content is similar to  that
in petroleum-derived  gasoline,  but the olefin content of Fischer-Tropsch
gasoline  is much higher than  that  of  petroleum gasoline.  The absence of
nitrogen  and sulfur  compounds means that  heterocyclic compounds  involving
these elements will  also  be absent. The  advantage in terms of SOX  and  NOX
emissions is probably  not significant  because petroleum gasolines tend  to
be low in nitrogen  and sulfur as well.  The  Fischer-Tropsch synthesis
reactor also produces  a wide  variety of oxygenates.  The extent  to  which
these are present  in  the  gasoline  product is unknown.

     The  Reid  vapor  pressure  for Fischer-Tropsch gasoline  is estimated  to
be 10 (Reference 34).  This is  in  the  middle of the range of Reid vapor
pressures for  petroleum gasolines  (7 to 15)  (Reference  35).   Thus,  evapora-
tive emissions from  handling  and storage  should be similar in quantity  to
those from petroleum  gasoline.

                                     E-26

-------
                           TABLE E-18.
PROPERTIES OF NO. 2 FUEL OIL REFINED FROM
PETROLEUM AND SYNCRUDE(27)
I
ro

Parameter

Gravity, °API
Molecular Weight
Pour Point, °F
Flash Point, °F
Viscosity, cSt, 100°F
Distillation Temperature, °F
IBP
10, LV %
50,LV%
90,LV%
EP
Bottoms %
Ultimate Analysis
Hydrogen, Wt%
Carbon, Wt %
Sulfur, Wt ppm
Nitrogen, Wt ppm
Oxygen, Wt ppm
SPECIFICATION CRUDE OIL^29'
5Q% virgin
50% cracked
Sample No.
API #78-4
30 36.2
— —
20 -10
100
2.0-3.6 2.6
437.0
470.0
511.0
540-640 572.0
610.0
— —

<5,000 2,500
EDS COAL^30) H-COAL ATMOSPHERU
OIL DISTILLATE STILL BOTTOMS
first stage
hydrocracking
Sample No.
3532-7
25
220
-75
136
2.37
367.0
412.0
470.0
545.0
592.0
1.0

12.03
87.80
2.0
0.6
718.0
second stage
hydrocracking
Sample No.
3532-20/26
27.4/27.9
—
—
—
2.28/2.06
397/400
408/404
450/433
539/540
585/583
1.0/1.5

23.17/12.20
86.93/87.93
84/1 39
0.6/0.2
723/415
second stage
hydrocracking
Sample No.
3531-35/36
—
—
—
—
—

—
—
—
600
—

23.61/12.50
86.69/87.33
20.2/7.1
0.2/1.9
102/483

-------
TABLE  E-19.   PHYSICAL  PROPERTIES OF  JET/DIESEL FUELS  FROM COAL SYNCRUDE(27)
Parameter
Processing Conditions
Catalyst Temperature °F
LHSV
Hydrogen partial pressure, psig
Recycle Gas Rate, SCF/bbl
Catalyst
Physical Properties
Gravity, °API
Flash Point, °F
Distillation Temp. End Point, °F
Viscosity @ 100°F, cSt
Cu Corrosion
Aromatics, LV %
Smoke Point, (min)
Freeze Point, °F
Thermal Stability
JFTOT P 260
Existant Gum, ppm
H-Coal
111. #6 Coal
Burning Star
Mi ne
— Single
750
0.5
2232
7921
1 CR-113
37
108
554

No. 1
2.3
23
-53
No. 1
P 0
1
Sync rude
Wyodak
Coal
Stage Hydro Tre
(several )
752
1.0
2257
7743
1 CR-113
39.7
>100
<554

No. 1
3.6
21
<-40
—
—
1
SRC LI Syncrude
Pittsburgh Seam
Blacksburg, W.Va.
#2 Mine, Conoco Coal


750
0.5
2306
13752
1 CR-113
36.3
>100
<554

No. 1
5.0
22
-75
No. 1
P 0
2
     Physical  properties  of +250°F boiling range product
                                      E-28

-------
                     TABLE E-20.  DETAILED  SPECIFICATION FOR JET FUEL,  AND DIESEL FUEL(27)
I
ro




Parameters
Flash Point, °F (min)
Smoke Point, (min) (32)
Pour Point, °F (max)
Freeze Point, °F
Water/Sediment, Vol % (max)
Ex is tan t Gum, ppm
Carbon Residue on 10% Bottoms, % (max)
Thermal Stability
Ash, Wt % (max)
JFTOT @ 260°C
Distillation Temperature, °F
10% (max)
90% (min)
" (max)
End Point
Kinematic Viscosity, cSt
@ 100°F (min)
(max)
Aromatics, LV %
Gravity, °API (min)
Copper Strip Corrosion (max)



Jet (4)
Fuel v '
>100
> 20
—
<-40
--
< 7
--
No. 1 or 2
—
P<25 min

--
--
—
570

--
--
< 20
37-51
No. 1
Diesel Specifications
ASTM D-975-78 (33)
All Typical Cold
Climates Climates Climates
No. 1 D No. 20 No. 2D
>100 >100 >125
__
__
—
--
__
—
__
<0.01 <0.01 <0.01
	 — 	

__
--
<550 <540-560 <560
— — __

1.3-2.4 1.9-4.1 1.7-4.1
__
--
__
No. 3 No. 3 No. 3
               Sulfur, Wt %  (max)
               Octane No.
< 0.5
>  40
< 0.5
>  40
< 0.5
>  40

-------
TABLE E-21.  COMPARISON OF PRINCIPAL UNLEADED GASOLINE  SPECIFICATIONS
             WITH ESTIMATED FISCHER-TROPSCH GASOLINE  PROPERTIES
             CASE II ^ '
        Properties

Gravity, °API

Octane Numbers
  Research
  Motor
  (Research + Motor) /2

Volatility
  Reid Vapor Pressure, Ib
  Distillation, OF
      IBP
      10%
      30%
      50%
      70%
      90%
      EP

  V/L Ratio (+20), OF

Sulfur, wt  %

Composition, vol  %
  Paraffins
  Olefins
  Naphthenes
  Aromatics

Molecular Weight
                            Estimated F-T
                          Unleaded Gasoline

                                   67.2
                                   91
                                   83
                                   87
                                   10.0

                                   86
                                  108
                                  137
                                  186
                                  249
                                  335
                                  420

                                 0127

                                  Nil
                                   60
                                   20
                                    3
                                   17

                                   93
 Specifications
     82 min
     87 min
     158 max

170/250 min /max

    374 max
    437 max

   0140 max

    0.10 max



     20 max  (Target)
                                  E-30

-------
E.3.1.1  F-T By-Product Chemicals Composition

     Approximately 5 to 12 (weight percent) of the Fischer-Tropsch
synthesis product is by-product chemical oxygenates  (Reference  28).   Table
E-22 shows the distribution of these products.  At the SASOL  plant the
aldehydes are hydrogenated and methanol is used on-site as make-up in the
Rectisol gas cleaning unit.  Ethanol,  propanol, butanol,  pentanol, acetone,
MEK, and a higher alcohol fraction are the products  distributed
commercially (Reference 31).

E.3.1.2  Tars, Oils, and Phenols

     Depending on the type of gasifier used, by-product tars  and  oils from
the gasification unit may be produced.  Tables E-23, E-24, and  E-25  present
data on the composition of typical gasifier tar and  oil by-products.  It
can be seen from these tables that coal type and  source are important
factors in determining the composition of the tars and oils.  Table  E-23
shows that di- and tri-aromatics are the primary  constituents of  tars from
the Synthane gasifier.  N-heterocyclics, phenols, and benzene are present
in much smaller but significant quantities, and pentacyclic aronatics are
only present in trace amounts.

      Table E-25 presents the composition of an oil  sample produced  by  a
Lurgi gasifier.  It is primarily composed of benzene and  alkylated
benzenes.  Table E-25 shows the elemental composition of  unseparated  tars
and oils also produced by a Lurgi gasifier.   It can  be seen that  a wide
range of trace and minor elements can  be present.

     Table E-26 shows the estimated  composition of the crude  phenol
by-product stream from a Lurgi gasification unit.  More than  70 percent of
the mixture is expected to be monohydric phenols.  Other  organics such  as
benzene may also be found in the phenol stream.

      TABLE E-26.   ESTIMATED COMPOSITION OF PHENOL  BY-PRODUCT  STREAM
              Phenol Class/Compound                    Percent  (wt)
                Monohydric  Phenols                          74
                   Phenol                                   50
                   Cresols                                  17
                   Xylenols                                  4
                Catechols                                   20
                Resorcinols                                  7
                                     E-31

-------
TABLE E-22.  BY-PRODUCT,CHEMICALS PRODUCED BY FISCHER-TROPSCH
             SYNTHESIS  (   '

NON-ACID CHEMICALS
Acetaldahyde
Propionaldehyde
Acetone
Methanol
Butyraldehyde
Ethanol
NEK
i -Pro pa no 1
n-Propanol
2-Butanol
EEK-MPK
i-Butanol
n-Butanol
N-Butylketone
2-Pentanol
n-Pentanol
Ccr alcohols
Wt %
3.0
1.0
10.6
1.4
0.6
55.6
3.0
3.0
12.8
0.8
0.8
4.2
4.2
0.2
0.1
1.2
0.6
                              E-32

-------
TABLE E-23.  COMPOSITION OF BENZENE-SOLUBLE TARS PRODUCED  IN SYNTHANE
             GASIFICATION PROCESS {  ;
Compound/Class
Mono Aroma tics
Benzene
Phenols
Di Aromatics
Naphthalenes
Indans/Indenes
Naphthols and
Indanol s
Tri Aromatics
Phenyl na ph tha 1 enes
Acenaphthenes
Fluorenes
Anthracenes/
Phenanthrenes
Acenaphtnols
Phenanthrols
Tetracyclic Aromatics
Pericondensed
(benz^nthracenes,
chrysene)
Catacondensed
(pyrene, benz-
phenanthrenes)
Pentacyclic Aromatics
Heterocycl ics
Dibenzofurans
Dibenzothiophenes and
Benznaphthothiophenes
N-Heterocyclics
Type/Origin of Coal
Bituminous
(Illinois)
Lignite
(N. Dakota)
Subbituminous
(Montana)
Volume %

2.1
2.8

11.6
10.5
0.9


9.8
13.5
9.6
13.8

--
2.7

7.2


3.0


trace

6.3
6.2
10.8

4.1
13.7

19.0
5.0
11.4


3.5
12.0
7.2
10.5

2.5
--

3.5


1.4




5.2
1.0
3.8

3.9
5.J

15.3
7.5
11.1


6.4
11.1
9.7
9.0

4.9
0.9

4.9


3.0




5.6
1.5
5.3
Bituminous
(Pennsylvania)


1.9
3.0

16.5
8.2
2.7


7.6
15.8
10.7
14.8

2.0
--

7.6


4.1


trace

4.7
2.4
. 8.8
                                  E-33

-------
TABLE E-24.  COMPOSITION OF TARS AND  OILS  PRODUCEDJjY GASIFICATION
             OF VARIOUS COALS  IN LURGI  GASIFIERS  v   '
CM) Nta*er
Coil Typc/OrlQin
Production IUt*, kg/tonnt
coal (dry basis)
Elemental Composition (»t I)
C
H
N
%
0
Ash
Phenols
llinor and Trace Elements (pprr
*9
As
B
Bi
Be
Br
U
Ce
Co
Cr
Cs
Cu
f
&a
Ge
Hg
Li
No
*1
Nt
P
Pt>
Rt>
Sb
Sc
Se
Sn
Sr
T»
u
V
u
1
Zn
Zr
A)
Ci
ft
I
".a
SI
Tt
1
Subb1tun1nous
Montana Rosebud
Tar Oil
26 2f>
83.1 81.3
7.7 9.2
0.65 0.5
0.28 0.5
8.2 8.5
0.05 0.03
5.3 19.1
r)
2
B1u»(noul
Illinois M
T«r Oil
27 5
85.5 84.8
6.4 7.8
1.2 0 7
1.7 24
5.2 4.3
0.03 0.01
2 20.1
3
aitt«1noui
Illinois »S
Tar Oil
35 6
85.9 84.9
6.4 7.7
1.2 0 5
2.4 2 3
4.2 4.7
0.01 0.01
4.7 19.2
4
BlUMlnoMS
Pittsburgh M
T«r Oil
38 8
88.5 87 3
5.9 7.6
0.9 0.5
1.5 1.5
3.2 3.2
0 01 0.01
1 10
„

..
--
..
..
5
Bltwtnous
S. African
Tar 01 1
15 8


0.3 0.25
4 26
50 0.5
0.8 0.05
<.04 '.04
-.05 <0.3
4 <0.3
4 <0.5

0.4 .0.1
2.5 0.3
2.5 1.2
50 1
0.8 0.5

S 0.2
-
6
llgnitt
N Dakota
Tar 011
IS B


0.65 0.52
0.45
7 24
1 4
2 S60
<0.1
«0.1 -0.2
•0.3 <0.5
4
0.6 0.9
5 4
3 2
51 5
01
2.9 0.16
0.7 0.1
2 6
11 0.7
J 2
90 2
14 4
2 0.2
0.7 2
0.2 0.4
84 0 3
0.9
3 0.2
3 1
0.9 2
10 1
1500 150
2600 230
1500 100
178 35
700 390
4200 180
92 5
764 19
9
Lignite
N. Dakota
Tar DM
15 6



2 1 7
20 30
15 O.S
01 0 05
«0.1 '0 1
0.05 0.02
1 0.6
0.1 2
12 .06

«0.1 <0 1
0.5 O.S
0 02 0.02
10 15
1 5 0.15
.0 05 -0 02
02 -0 01
0.2 -0 05
5 -1
0.05 0 IS
6 0 4
                                 E-34

-------
 TABLE  E-25.   ORGANIC  COMPOSITION OF  LURGIvOIL  PRODUCED  AT THE
              WESTFIELD  LURGI  FACILITY  (*3)
   Compound/Class

Paraffins
Olefins
Aromatics
Sulfur (total)
Benzene
Toluene
Xylene and
ethyl benzene
Ethyl toluene
Trimethyl Benzenes
Styrene
Indane
1,2-benzofuran
Indene
Naphthalene
Thiophenes
Concentration (wt

      10.71

      89.3

      19.56
      28.40
      14.7

       2.69
      11.8
       1.07
       1.43
       1.09
       5.37
       1.40
       1.77
                             E-35

-------
E.3.2  MOBIL-M GASOLINE

     Mobil-M gasoline  is  also  reported  to  be  free  of  detectable quantities
of nitrogen and sulfur as well  as  oxygen  (Reference 40).   The content of
paraffins, olefins,  naphthenes,  and  aromatics  is typical  of that of
petroleum gasolines  (Table £-27).  The  Reid vapor  pressure is also similar
to that of petroleum gasoline.   With  Mobil's  standard  additive package, the
gasoline  has passed  quality  screening tests for carburetor detergency,
emulsion  formation,  filterability, copper  attack,  metal  corrosion, and
storage stability  (Reference 40).

     Durene (sym-1,  2, 4,  5-tetramethyl  benzene)  is a  potentially
troublesome component  because  of its  175  F freezing temperature.
Carburetor plugging  can  be a problem if durene concentrations exceed 4
percent.  Mobil believes  that  manipulating of  process  conditions and
blending  with  conventional gasolines  can  keep  durene  concentrations to
acceptable levels  (Reference 41).

     Based on  the  Reid vapor pressure,  the evaporative emissions from
Mobil-M gasoline should  be similar in quantity to  the  emissions from
petroleum gasolines.  The absence  of nitrogen, sulfur,'and oxygen  indicates
that the  product will  be  free  of heterocyclic  compounds  as well.   As with
the  Fischer-Tropsch  gasoline,  the  absence of  nitrogen  and sulfur is
probably  not a  significant advantage  over petroleum gasoline  for NO  and
SO   emissions.                                                     x
  s\

E.3.3  METHANOL

     Methanol  (CI-UOH)  is  a light volatile alcohol. The  estimated
composition of  a typical  crude methanol  is shown  in Table E-28.  The
concentrations  of  the  impurities are  expected  to  vary depending on the
synthesis process  used.   Crude methanol  can be upgraded  to meet user needs.
Chemical  grade  methanol  is relatively pure, containing 0.05 percent water.
Technical or fuel-grade methanol,  however, will  probably contain impurities
such as those  listed in  Table  E-28.   Distribution  systems may introduce
additional water (Reference  42).

     Methanol  may  also be used as  a  motor fuel by  blending it with
gasoline.  Problems  with  corrosion,  phase separation  with water, and vapor
lock have been  reported  (Reference 48).   In hot  regions  of the country,
large, non-ideal increases in  the  vapor pressure  of the  blend may  require
that some of the lower molecular weight fractions  of  the gasoline  be
removed during  summer  months (Reference 42).
                                     E-36

-------
TABLE £-27.  TYPICAL PROPERTIES OF FINISHED MOBIL GASOLINE^43)


COMPONENTS, WT%


BUTANES
ALKYLATE
C/ GASOLINE






COMPOSITION, WT%
3.2
28.6
68.2
1UU.U


PARAFFINS
OLEFINS
NAPHTHENES
AROMATICS

OCTANE





RESEARCH
56
7
4
33
TOT
MOTOR

CLEAR
LEADED (3 CC TEL/US
REID VAPOR PRESSURE,
SPECIFIC GRAVITY
SULFUR, WT%
NITROGEN, WT%
DURENE, WT%
96.8
GAL) 102.6
PSI 9.0
0.730
NIL
NIL
3.8
87.4
95.8





CORROSION, COPPER STRIP 1A
ASTM
10%
30%
50%
90%
DISTILLATION, °F
117
159
217
337






    TABLE E-28.  ESTIMATED CRUDE METHANOL COMPOSITION^4'
        CH.OH              94.6%
        CXOH
        dH^OH             2800 ppm

                   OH      150 ppm
        Non-methane HC's   600 ppm
        H0                5.0%
                             E-37

-------
E.4  CHEMICAL CHARACTERIZATION  OF  COAL  GASES

E.4.1  SNG

    The primary constituent  of  SNG is methane,  but  smaller  quantities  of
H , CO?, CO, N-, AR, H2S,  and C^Hg can  also  be  present.   Table  E-29  shows a
typical high-Btu product-gas  composition.  There  is evidence  that  trace
quantities of metal  carbonyls may  be  produced during catalytic  methanation,
during gasification, or  by reaction of  CO  and Ni  or Fe in piping  and other
structural components  (Reference 45).

                TABLE  E-29 TYPICAL SNG  COMPOSITION


                                              Concentration

                Concentration                     (vol  %)


               Carbon  dioxide                      0.50

               Carbon  monoxide                     0.06

               Hydrogen                            1.45

               Methane                            96.84

               Nitrogen  and argon                  1.15

               Hydrogen  sulfide                   0.2 ppm
E.4.2  CHEMICAL  CHARACTERIZATION OF  LOW-/MEDIUM-BTU COAL GAS

    The  composition  of  low-  and medium-Btu gas is highly variable and
depends  on  such  factors  as  coal type, gasifier type, gasifier operating
conditions,  and  the  extent  of gas cleaning.   It can be expected that gases
will be  cleaned  to meet  user needs.   If the bases are to be combusted,  it
can also  be  expected that  they will  be sufficiently cleaned to satisfy
federal  and  local  air quality regulations.

    Table E-30  shows the gaseous species in a typical low Btu gas.   Samples
were taken  over  a  week-long  period from a Wellman-Galusha gasification
facility  using  lignite  coal.   The values in the table represent an  average
of  the available data taken  during the sampling period, thus the calculated
confidence  intervals include not only sampling and analytical variance  but
also a major contribution  from process variability (Reference 47).

     Table  E-31  shows that  a wide range of trace and minor elements may
also be  present  in the  product gas.   In addition to the C1-C6 hydrocarbons
shown in  Table  E-30, a  product gas may contain a number of more complex

                                     E-38

-------
organics.  Table E-32 lists some that are of particular environmental
concern.   In the product gas characterized in Tables E-30, E-31, and E-32,
the combined polynuclear aromatics concentration was more than 3500 ug/SCM
(Reference 47).
                                    E-39

-------
     TABLE E-30.   GASEOUS  SPECIES  ANALYSIS  SUMMARY:
                   LOW-BTU  COAL GAS (   >
Analysis
Major Components (% ± 2o)
C02
H2
02 + Ar
N2
CO
OU
Sulfur Species (Vppra ± 2a)
H2S
COS
SO 2
CS2
Total volatile sulfur
Ci-C$ Hydrocarbons (Vpptn ± 2o)
CH.,
C2H6
C2Hu
CB + isomers
Ci* + isomers
Cs + isomers
C6 + isomers
Nitrogen Species (Vppm ± 2o)
NH3
HCN
Metal Carbonyls (Vpom)
Fe(CO)5
Ni(CO)i,
Product

9.5
15.4
0.7
46.8
26.3
1.3

1110
143
16
12
990

9590
643
314
445
193
202
197

842
200
NR


Gas

± 1.8
± 2,4
± 0.4
± 4.1
± 4.6
± 0.3

± 130
± 16
± 50
± 4


± 1510
± 132
± 68
± 68
± 42
± 392
± 100

± 943
± 90



NR   Not Reported
                           E-40

-------
TABLE E-31,
TRACE AND MINOR ELEME-NIxCOMPOSITIONS  OF
LOW BTU PRODUCT GAS  {*''
Element
Aluminum
Antimony
Arsenic
Barium
Beryllium
Bismuth
Boron
Bromine
Cadmium
Calcium
Cerium
Cesium
Chlorine
Chromium
Cobalt
Copper
Dysprosium
Erbium
Europium
Fluorine
Gadolinium
Gallium
Germanium
Gold
Hafnium
Holmium
Iodine
Iridium
Iron
PRODUCT
Participate
ug/SCM
27,000
<380
370
7,600
2.6
2.6
550
130
270
150,000
51
2.3
>3,200
88
14
270
1.7
0.64
0.97
1,300
1.9
23
7.2

2.9
0.97
<4

<33,000
GAS
Vapor
yg/SCM
0.42
<16
>18
21


>13
0.88

460
0.88

16
15
>0.8
11



9.2

13






460
Total
ug/SCM
27,000
<400
>390
7,600
2.6
2.6
>560
130
270
150,000
53
2.3
>3,200
100
>15
280
1.7
0.64
0.97
1,300
1.9
36
7.2

2.9
0.97

-------
TABLE E-31 (CONTINUED)
Element
Lanthanum
Lead
Lithium
Magnesium
Manganese
Mercury
Molybdenum
Neodymium
Nickel
Niobium
Phosphorus
Platinum
Potassium
Praseodymium
Rhenium
Rubidium
Samarium
Scandium
Selenium
Silicon
Silver
Sodium
Strontium
Sulfur
Product
Participate
yg/SCM
36
130
120
39,000
120
6,500
9.7
9.7
110
13
>3,200

>3,200
6.4
<0.3
<7
6.4
19
15,000
>6,700
110
21,000
3,900
>3,500
Gas
Vapor
yg/SCM
1.3
29
6.3
25
7.1
3.3


9.6

94

69


2.0


>3
330
30
31
4.2
860
Total
yg/SCM
37
160
130
39,000
130
6,500
9.7
9.7
120
13
>3,300

>3,300
6.4
<0.3
<9
6.4
19
15,000
>7,000
140
21,000
3,900
>4,300
          E-42

-------
       TABLE E-32.
ORGANIC COMPOUNDS IDENTIFIED FROM THE PRODUCT GAS
BY SIM GC/MS ^ }
   Compound  Identified
                    Concentration4
                        yg/SCM
  Sample
LC Fraction
Polychlorinated biphenyls^
Benzo(a)anthracene
Benzo(b) f 1 uoranthene
Biphenyl
7, 12-Dime thy lbenzo( a) anthracene
Benzo(c)phenanthrene
Benzo(a)pyrene
3-flethyl chloranthrene
Dibenzo( a, h) anthracene
Dinitrotoluenes
Dinitrocresol
Dihydroacridine
<15.0
1.8E3b
3.8E2b
5.1E3
1.6E2b
1.0E3b
1.9E2
4.7
6.1
2.2E3
1.8E3
1.1 E2
PGP-2
PGP-2
PGP-2
PGP-3
PGP-3
PGP-3
PGP-3
PGP-3
PGP-3
PGP-4
PGP-5
PGP-5
; PGC-2
,3; PGC-2, 3
,3; PGC-3
; PGC-3

; PGC-3




; PGC-5
,6
SCM at 25°C (77°F) and 101 kPa (1 atm),  dry basis
PGP = product gas particulate
PGC   product gas organic module composite

a aEb   a x 10b
  includes possible coeluting isomers
c based on PCG-3 Cl
  standard unavailable, based on dihydrophenanthridine
                                    E-43

-------
                              REFERENCES
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 9.   Applied Systems Corporation.  Compilation of Oil Shale Test
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11.   Carter, W. A., H. J. Buening, and S. C. Hunter.  Emission
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12.   von Lehmden, D.J., R.H. Jungers, and R.E. Lee.  "Determination of
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13.   Vitez,  B.  "Trace Elements in Flue Gases and Air Quality
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                                   E-44

-------
14.   McKay, J.F.  and D.R.  Latham.  "High-Performance Liquid Chromato-
     graphy Separation of  Olefin, Saturated,  and Aromatic Hydrocarbons
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15.   Lovell, P.P.  and W.H.  Seitzer.   "Some Flow Characteristics of
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16.   Nelson, W.L.   Petroleum Refinery Engineering 4th Edition New
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17.   Robinson, E.T.  Refining of Paraho Shale Oil into Miltary Speci-
     fication Fuels.  Proceedings of the 12th Oil Shale Symposium.
     Golden, Colorado:  Colorado School  of Mines, 1979.

18.   Sullivan, R.F.  Refining and Upgrading Synfuel  from Coal and Oil
     Shales by Advanced Catalytic Processes.   Chevron Research Company
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19.   Sullivan, R.F., B.E.  Stangeland and H.A. Frumkin.  "Refining the
     Products from the SRC  Coal  Liquefaction Process," Proceedings of
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20.   Sullivan, R.  F., D.  J.  O'Rear,  and B. E. Stangeland.  "Catalytic
     Hydroprocessing of SRC  II  and H-Coal Syncrudes  for BTX Feed-
     stocks,"  Symposium on  Alternate Feedstocks for Petrochemicals.
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21.   Riedl, F. J.  and A.J.  de Rosset.  "Hydretreating and Reforming
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22.   Gim, Tan and  A.J. de  Rosset.  "Hydrotreating and Reforming Exxon
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     Liquids, Interim Report, UOP, Inc.   FE-2566-25, February 1979.

23.   Gim, Tan and  A.J. de  Rosset.  "Hydrotreating and Refining H-coal
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24.   Gim, Tan and  A.J. de  Rosset.  "Hydrotreating and Fluid Catelytic
     Cracking of H-Coal  Process  Derived Gas Oils."  Upgrading of Coal
     Liquids, Interim Report. UOP, Inc.   FE-2566-20, August 1978b.
                                   E-45

-------
25.  Gim, Tan and A.J. de Rosset.  "Hydrocracking of H-coal Process
     Derived Gas Oils," Upgradin
     FE-2566-23, November i978c.
Derived Gas Oils," Upgrading of Coal Liquids, Interim Report.
                   ~T<
26.  Saunders, W.N. and J.B. Maynard.   "Capillary Gas Chromatographic
     Method for Determining the C^ - C1? Hydrocarbons in Full-Range
     Motor Gasolines," Analytical Chemisty 40(3):  529  (1968).

27.  Enviro Control,  Inc.   "Relative Health  Effects of  Gasoline and
     Heating Fuel Derived  from Petroleum or  Synthetic Crudes  (Draft),"
     Prepared  for the U.S.  Department  of Energy  under Contract No.
     DE-AC01-79PE-70021, May, 1980.

28.  American  Society for  Testing and  Materials.  ASTM  Method 0-86,
     Philadelphia, PA.

29.  Hazelton  Laboratories  America,  Inc.   "24-Month Inhalation
     Toxicity  Study of Raw  and Spent Shale Dusts  in Rats and  Monkeys,"
     Final Report.  API, March, 1980.

30.  Riedl, F.J. and A.J.  de Rosset.   "Hydrocracking of EDS Process
     Derived Gas Oils," Upgrading of Coal  Liquids, Interim Report.
     UOP,  Inc., FE-2566-33, November 1979c.

31.  Hoogendorn, J.C.  "Experience With Fischer-Tropsch Synthesis at
     SASOL."   Presented at  Institute for Gas Technology, Chicago,
     Illinois  1973.

32.  American  Society for  Testing and  Materials.  ASTM  Method
     0-396-75.  Philadelphia, PA.

33.  O'Rear, D.J., R.F. Sullivan, and  B.E. Stangeland.  "Catalytic
     Upgrading of H-Coal Syncrudes."   Proceedings of the National ACS,
     Houston,  Texas,  March  1980.

34.  Schreiner, Max.  "Research Guidance Studies to Assess Gasoline
     from  Coal By Methanol-to-Gasoline and SASOL-Type Fischer-Tropsch
     Technologies."   Prepared by Mobil  Research  and Development
     Corporation for  the U.S. Department of  Energy, FE  2447-13, August
     1978.

35.  Shelton E.  "Motor Gasolines Winter 1978-79."  Bartlesville
     Energy Technology Center, U.S.  Department of Energy,
     BETC/PPS-79/3 July 1979.

36.  Forney, A.J., W.P. Haynes, et al.   "Analyses of Tars, Chars  and
     Water Found in Effluents from the Synthane  Process."  Pittsburgh
     Energy Research  Center, Pittsburgh, PA.  Technical Progress
     Report 76, January 1974.
                                    E-46

-------
37.  Ghassemi, M., K. Crawford and S. Quivlivan.  "Environmental
     Assessment Report:  Lurgi  Coal Gasification Systems for SNG."
     Prepared by TRW Inc. for U.S. EPA Industrial  Environmental
     Research Laboratory, Research Triangle Park,  N.C.,
     EPA-600/7-79-120, May 1979.

38.  Westfield Development Center.  Data provided  to EPA's Industrial
     Environmental Research Laboratory, Research Triangle Park, No.
     Carolina,  Novemver 1974.

39.  South Africa Coal Oil and Gas Corp., Ltd.  Table based on data
     provided to EPA's Industrial Environmental Research Laboratory,
     Research Triangle Park, November 1974.

40.  Liederman, D. et al.  "Mobil Methanol-To-Gasoline Process,"
     Proceedings of the 15th Intersociety Energy Conversion
     Engineering Conference.  Seattle, Washington, August 18-22, 1980.

41.  "Mobil Proves Gasoline-From-Methanol Process,"  Chemical and
     Engineeirng News.  January 30, 1978.

42.  Timourian, H. and F. Milanovich.  "Methanol as  a Transportation
     Fuel:  Assessment of Environmental and Health Research."  UCRL
     52697, Lawrence Livermore Laboratory, Livermore, California,
     1979.

43.  Kuo, James, C.W. and M. Schreiner.  "Status of the Mobil Process
     for Converting Methanol to High Quality Gasoline."  Proceedings
     of Fifth Annual International Conference on Commercialization of
     Coal Gasification, Liquefaction and Conversion to Electricity.
     University of Pittsburgh, PA., August 1-3, 1979.

44.  Badger Plants,  Inc.   "Conceptual Design of a Coal-to-Methanol-
     to-Gasoline Commercial Plant."  Second Interim Final Report for
     the Period August 31, 1977   March 1, 1979.  Volume I,
     FE-2416-43, March 1979.

45.  C.F. Braun and Company.  "Carbonyl Formation in Coal Gasification
     Plants."  Prepared for the U.S. Energy Research and Development
     Administration and the American Gas Association, FE-2240-16,
     December, 1974.

46.  U.S. Bureau of Reclanation.   "Final EIS:   Proposed Western
     Gasification Company (WESCO) Coal Gasification and Expansion  of
     Navajo Mine by Utah  International,  Inc.,  U.S. Department  of
     Interior, 1976.

47.  Kilpatrick, M.P. et  al.  "Environmental Assessment:  Source Test
     and Evaluation Report; Wellman-Galusha (Ft.  Snelling)  Low-Btu
     Gasification."  EPA-600/7-80-097, U.S. Environmental Protection
     Agency, Washington,  D.C., May  1980.

                                    E-47

-------
48.  Wigg, E.E.  "Methanol as a Gasoline Extender:  A Critique."
     Science 186 (4166):  785, 1974.
                                    E-48

-------
                                 APPENDIX F

                   COMBUSTION PRODUCTS AND USE PROPERTIES

                             OF SYNTHETIC FUELS
                             TABLE OF CONTENTS
                                                                   Page

F.I     COMBUSTION OF SHALE OIL PRODUCTS	F-3

        F.I.I   Crude Shale Oil	F-3
        F.I.2   Gasoline From Shale Oil	F-9
        F.I.3   Shale Oil  Jet Fuels	F-9
        F.I.4   Diesel  Fuel Marine	F-9

F.2     DIRECT LIQUEFACTION PRODUCTS USE/COMBUSTION TESTING ...  F-10

        F.2.1   SRC II  Fuel Oil Testing	F-10
        F.2.2   H-Coal  Distillate Combustion Tests  	  F-20
        F.2.3   Combustion/Handling Properties of EDS Coal
                Liquids	F-23
F.3     CHEMICAL CHARACTERIZATION OF INDIRECT COAL LIQUIDS
        COMBUSTION PRODUCTS 	  F-28
F.4     CHEMICAL CHARACTERIZATION OF LOW-/MEDIUM-BTU COAL GAS
        COMBUSTION PRODUCTS 	  F-28
                                    F-l

-------
                            TABLES
Number                                                          Page

 F-l     PROPERTIES OF  PARAHO CRUDE  VS.  LOW  SULFUR OIL  .  .   F- 3

 F-2     EXCESS NO  FROM SHALE OIL  COMBUSTION  TESTS
         COMPARED TO BASELINE LOW SULFUR  OIL	F-4

 F-3     PNA EMISSIONS    SHALE OIL  TESTS	F-8

 F-4     SRC II FUEL OIL COMBUSTION RESEARCH  PROJECT
         EQUIPMENT, CONDITIONS,  AND EMISSION  RESULTS.  ...   F-11

 F-5     PHYSICAL HANDLING  PROPERTIES OF  SRC  FUEL  OIL
         VERSUS PETROLEUM DISTILLATES	F-13

 F-6     NO  VALUES FOR  SRC  II,  NO. 2 AND  NO.  5  FUEL OIL
         UNDER VARIOUS CONDITIONS (ppm)	F-15

 F-7     ASH ANALYSES-SRC FUEL OIL  AND NO.  5  FUEL  OIL  ...   F-16

 F-8     AVERAGE FUEL PROPERTIES	F-18

 F-9     COMPARISON OF SHALE OIL, SRC II,  AND  TYPICAL
         PETROLEUM FUELS AND COMBUSTION EMISSIONS  (ug/m).  .   F-21

 F-10    EDS FUEL OIL COMBUSTION TEST PARTICULATE
         AND NO  EMISSIONS	F-25
               ^
 F-ll    PROPERTIES OF EDS  FUEL  OILS	F- 27

 F-12    GASEOUS SPECIES ANALYSIS SUMMARY:   LOW-BTU
         TEST BURNER FLUE GAS	F- 29

 F-13    TRACE AND MINOR ELEMENT COMPOSITIONS
         OF LOW-BTU TEST BURNER  FLUE  GAS	F-30


                            FIGURES
Number                                                       Page

 F-l     MASS EMISSION RESULTS	F-5

 F-2     PARTICLE SIZE DISTRIBUTION	F-6

 F-3     PARTICULATE EMISSIONS SUMMARY	F-19

 F-4     RELATIVE NO  VALUES AS  A FUNCTION OF  THE  FUEL-BOUND
         NITROGEN CONTENT OF THE H-COAL FUELS	F-22
                              F-2

-------
F.I  COMBUSTION OF SHALE OIL PRODUCTS

     A large amount of work has been and is being conducted  by  the  DOD on
the combustion properties of shale oil derived products. Most of  the  work
reported to date is based on the tests of a 10,000 barrel  sample  of shale
oil that was produced at Anvil Points, Colorado by the  Paraho process.  It
was refined into synthetic gasoline, JP-4, JP-5, diesel  fuel marine (DFM),
and heavy fuel oil at the Gary Western refinery.  In  addition to  the  DOD
efforts, Southern California Edison Company (SCE) studied  the handling and
combustion of a separate lot of Paraho crude  shale oil  for EPRI.  The main
test results of these projects are presented, by product,  in the  following
sections.

F.I.I  CRUDE SHALE OIL

     The composition of the crude Paraho shale oil used  during  a  series of
combustion tests (Reference 1) at the SCE Highgrove Generating  Station is
compared in Table F-l to the low sulfur oil normally  burned.

         TABLE F-l.  PROPERTIES OF PARAHO CRUDE VS. LOW  SULFUR  OIL

Elemental Analysis (wt %)





Ash
API
C
H
N
S
0
Content
Gravity @ 60°F
Paraho Oil Shale
86.05
11.48
1.98
0.68
1.81
0.222
20.3
Low Sulfur Oil
86.38
12.49
0.22
0.27
0.64
0.009
24.6
Heating Value

         HHV                      18,195                  19,235

         LHV                      17,145                  18,100
The Highgrove Unit 4  is  a  balanced  draft  45  MW  Combustion  Engineering
boiler.  Mass loading, NO  ,  and  particle  measurements  were taken during
both the baseline and  lowxNO  mode  runs.
                             /\

     The shale oil NO  levels were  consistently higher than the low sulfur
oil NO  levels. Because  of California  air quality  standards, only 50
percent of the fuel feed or  50  percent  of the  burners  were fueled by the
shale oil.   The calculated excess NO   added  by  the shale oil is given in
Table F-2.  The increase in  NO   is  attributed  to the higher N content of
the shale oil, and would be  above current federal  standards.  The
                                     F-3

-------
combustion modification tests  conducted  by  SCE  did  show  promise  of  reducing
the shale oil NO  emissions.   Further  tests  are  necessary  to optimize  those
procedures.


          TABLE F-2.  EXCESS NO  a  FROM SHALE  OIL  COMBUSTION TESTS
                               A
                      COMPARED TO  BASELINE  LOW  SULFUR  OIL


   % Shale Oil
    Combusted             Normal  Firing       Off Stoichiometric  Firing,
    (Approx)                   ppm                        ppm
10
20
30
40
50
+93b
+ 134
+ 170
+206
+224
(+166)C
(+282)
(+368)
(+446)
(+548)
+72b
+99
+ 138
+186
+209
(+94)C
(+141)
(+178)
(+206)
(+225)
Baseline  emission
for low sulfur  oil         216      (248)             222      (225)
     a.   Corrected  to  3%  02

     b.   Low  NO   burner
                 ^

     c.   Peabody  burner


     The mass  emission  results  from the SCE tests are displayed in Figure
F-l.   The mass  emissions during the shale oil  tests  were much  higher than
with the low sulfur  oil.   It  was postulated (Reference 1) that as the
individual  fuel  droplets burned, surrounded by their own diffusion flame,
fuel cracking  occurred  in  the liquid phase within the drop.   The cracking
proceeded at a  rate  proportional to fuel  boiling temperature,  producing
initially heavy fuel  residue.  The residue in  turn increases theoverall
boiling temperature  of  the fuel blends within  the drop,  allowing fuel
cracking to proceed  at  a  faster rate.   Further cracking  finally produces
carbonaceous and char-like particulates,  which are left  after droplet
combustion  is  completed.

     This mechanism  would  also  explain why most of the particles emitted
were larger than 10 u m.  Figure F-2 displays the particle size measurement
results from the SCE  lists and  compares them to a typical oil  fired
(Reference  2)  result.   The production  of  large particles during oil firing
is  not the  normal  case,  as estimates of particle size distributions from
oil fired boilers  range  from  58 weight percent below 3 urn (Reference 3) to
                                     F-4

-------
   0.20
   0.15
w
PQ
CO
§
§  o.ia
  O.U50
  O.C1C
                                                          All Points
                                                                     -3,
    y-(2.6xlO J)xlOO

      0.51
                                                          A'Tanic Blended


                                                           .Dual Burner

                                                           '"Blending

                                                             Low  Sulfur
                                                           ""Oil  Alone
                 10
20        30         40
     % SHALE OIL BLENDING
50
                    Figure  F-l.  Mass Emission Results
                                     F-5

-------
100
                                            48.6% Tank Blendec
                                            Shale Oil (1)
                                            49.7%  Dual  Burner
                                            Bleeding  (1)
                                                     Power
                                            Plant  (2)
0.1
1. SCE/EPRI
?. Bennet
                                                           100
                        PARTICLE SIZE  (urn)
           Figure  F-2.   Particle  Size Distribution
                             F-6

-------
90 weight percent below 7  m (Reference 4).  The  larger particles  produced
by the shale oil would pose no removal problem and, in fact, could  be  less
of a health problem because of less penetration into the  respiratory tract.

     Data on the trace element emissions from the boiler were not  given,
but the trace element composition of the shale oil burned was measured.
Comparing it to the data in Table E-3 in Appendix E, only arsenic,  boron,
manganese, and mercury appear in higher concentration than  in residual  or
crude oils.  Of the group, only arsenic was present in significantly higher
amounts (9.4 ppm vs. 0.17 ppm for crudes).

     The final parameter studied was the polynuclear aromatic (PNA)
emissions from the boiler during the burning of an approximate 50/50 shale
oil/low sulfur oil  mixture (Table F-3).  Comparing the total amount o^
PNA's found at five other petroleum oil burning plants, the 0.92 ug/m   from
the shale oil tests was at the low end of the concentration range  (0.1 to
2.3 Mg/m3).  During the SCE tests, only the filter was analyzed, and no
mention was made of using XAD-2 or other absorbents to quantitively collect
PNA's that might be present in the vapor phase.   Depending  on stack
temperature and sampling conditions, the actual PNA value could be  higher.

     As result of this study it can be concluded  that:


     •    No significant fuel handling, fuel mixing, combustion
          instability, smoke formation, or  boiler operational problems
          occurred during the burning of shale oil.

     •    NO  emissions, on the average, were 90  to 500 ppm higher during
          normal burning and 70 to 225 ppm  higher during  off-stoichiometric
          burning.

     •    Conventional off-stoichiometric combustion techniques reduced NO
          emissions.                                                       x

     •    Particulate emissions were  greater than those produced during oil
          fi ring.

     •    The particle size distribution showed that 90 percent of the
          particles were larger than  20 ym.


     A study  (Reference 5) of the combustion characteristics  of whole,
de-ashed and desulfunzed Paraho shale oil  was conducted  on a  subscale gas
turoine-like combustor.  The nitrogen  content  ranged  from 0.33 to  1.63
percent for  the desulfunzed sample.   The excess  NOX  values were 60 to 180
ppm higher than the No. 2 fuel oil baseline data  over  the range of fuel-
bound nitrogen  and the exhaust temperatures studied.   Smoke values were
slightly above  the values for No. 2 distillates over most of  the  range of
exhaust temperatures  tested.
                                     F-7

-------
 I
00

Compound
Naphthalene
Phenanthridine
Dlbenzothiophene
Anthracene/Phenathrene
Fluoranthene
Pyrene
Chrysene/benz(a)anthracene
Benzopyrene and perylenes
Benzo(a)pyrene
Benzo(e)pyrene
Benzo(g,h,i) Perylene
Benzo Fluoranthenes
Methyl Anthracene
Total
AVERAGE
Shale Oil/
Crude Oil m,
Utility Boiler u;a
._
--
--
--
0.4>>
0.15
0.12
0.23
-
0.92
a 49.3% shale oil, 50.7% low sulfur crude
b Benz(a)anthracene
c Range from 3 plants, filter sample
d) XAD-2 resin sample
CONCENTRATION (ug/m3)
Oil-Fired ,«».
utility Boiler^'0
5
0.3
0.6
0.6
1
1
0.1
0.04
-
-
-
9.24


Oil-Fired m Oil-Fired ...
Utility BoilerlJ'c Utility Boiler^'0
-
-
-
0.008-2.13 0.024
0.007-0.098 0.009
0.006-0.051 0.0004
0.00019
0.032
0.032
0.00005
<0.1-0.21
0.021-2.28 0.10


—(
co
m
-n
00

•sc.
3
(— 1
oo
o
00
1
oo
DC
r*
m
o

00
—t
oo

-------
      These subscale tests were followed  by  full  scale  tests  (Reference 8)
with the same Westinghouse combustor used  in their  35-  and  90-MW  engines.
Whole Paraho shale oil was burned and the  results for NOX and  smoke were
compared to No.2 petroleum distillate.  The  N0x  levels  for  the  shale oil
(nitrogen 0.33 percent) were 10 to 20 ppm  higher, with  the  lowest NOX level
reached at the highest (2000 F) exhaust temperatures.   The  shale  oil
produced the highest smoke levels of the  synfuels tested  (H-Coal  and SRC II
blend).  Overall, it was concluded that the  shale oil produced  no
significant differences in combustion characteristics compared  to petroleum
diesel fuels.

F.I.2  GASOLINE FROM SHALE OIL

     The Army Fuels and Lubricants Research  Laboratory  (AFLRL)  has
performed limited tests with shale oil gasoline.  The gasoline  produced
from the Gary Western  run failed the existent  gum test  (4 mg/100  ml versus
2mg/100 ml allowed), and early tests with  an off-specification  gasoline
produced severe exhaust valve erosion/corrosion.  When  the  engine cycling
tests were repeated with a new lot of the  shale  oil  gasoline,  no  problems
were encountered and no abnormal wear was  found.  No data on  emissions were
presented.

F.I.3  SHALE OIL JET FUELS

     Neither the JP-4  nor JP-5 fuels met  the military specifications for
contamination or gum content.  Both of these parameters can be  controlled
at the refinery and will not be a problem in commercial products.  Both
clay treatment and secondary hydrotreatment  produced fuels  of  much higher
quality.

     Combustion tests  of JP-4 showed that  it behaved the  same  as  petroleum-
based JP-4 with the exception of NO  emissions.   JP-5 exhibited similar
problems with NO* (+15 to 20 ppm) and had  a  smoke number  12 times higher
than petroleum JP-5.   This increase in the smoke number was attributed to
the higher aromatic content of the fuel.   A  flight  test using  JP-4 in a
T-39 was conducted.  Performance was  rated normal and no  in-flight problems
were encountered.

F.I.4  DIESEL FUEL MARINE  (DFM)

     The shale oil DFM tested did not meet the military specifications for
viscosity, pour point, or  acid number.  Tests  using a corrosimeter showed
no measured  corrosion  for  aluminum or 70/30  copper/nickel  alloy,  and very
little for 90/10 copper/nickel  (0.1 mil/yr), moderate corrosion of copper
(0.8 mil/yr) and mild  steel  (1.2 mil/yr), and  relatively severe corrosion
of zinc  (9.8 mil/yr).  These  levels were  deemed acceptable  and it was
expected that there would  be  no compatibility  problems  in ship fuel
systems.

     Tests with typical  diesel  engines  showed  that  combustion efficiency,
CO, and  THC  were the  same  as  for  petroleum DFM.   The exhaust smoke was  high
                                     F-9

-------
and the NO  values ranged  from 20  to  60  ppm  higher  than  in  petroleum  DFM
tests.

F.2  DIRECT LIQUEFACTION PRODUCTS  USE/COMBUSTION  TESTING

     Most combustion testing  of  direct  liquefaction  products  has  been  done
on the SRC II liquids.  As  Table F-4  (ORNL)  shows,  a variety  of  systems
have been used to evaluate  their combustion  properties.   Only limited
studies on H-Coal (Reference  9)  and  EDS  (Reference  10)  liquids have been
completed.  All the SRC II  studies have  been  done on fuel-oil-type liquids.
Generally this implies that some ratio  of  middle  to heavy distillates  was
used in the test program.   The ratio  of  middle  to heavy  distillates ranged
from 2:1 to 5.75:1 in the  programs to date.

F.2.1   SRC II FUEL OIL TESTING

     In one of the early tests (Reference  11),  the  factors  affecting  NO
production during the burning of SRC  II  fuel  oil  (4:1 MD to HD)  were
studied.  This work concluded that fuel  surface tension,  viscosity and
vaporization characteristics  were  important  in  determining  the conversion
level of fuel-bound nitrogen  to  NOX.   It was  assumed that the proportions
in which the medium and heavy distillates  of SRC  II  were blended may  have
had a significant effect on the  NO  levels.   While  high  proportions of the
heavy distillates would be  desirable  to  provide delayed  evaporation and
pyrolysis for the production  of  N0x-reducing  radicals,  such a high
concentration could lead to excessively high 0^ levels  which  may adversely
affect NO  emission.  On the  other hand, larger proportions of SRC II
medium distillate may be tolerated and  may result in an  optimum  NO
reduction and low excess 0- operation if mixing intensity and locaf fuel
stoichiometry within the burner  flame controlled  by appropriate  burner
design.  The SRC II blend  proportions that are  effective  for  NOX control in
the normal firing mode may  not be  effective  in  the  off-stoichiometry  mode.
Also, blend proportions for maximum  NOX  reduction may vary  from  boiler to
boiler, depending on burner design and  furnace  firing arrangement.  It was
concluded that effective NO  control  can be  achieved by  designing special
burner hardware that would  cielay mixing  and  would control the local fuel
stoichimetry within the fuel.

     In another test (Reference  5) of the  handling  and  combustion
properties of SRC II, a middle distillate, a  heavy  distillate, a middle/
heavy blend, a 3:1 No. 2 distillate-to-SRC II blend, and  a  1:1 No.2
distillate-to-SRC II blend  were  evaluated  on  a  subscale  gas-turbine-like
combustor.  In general, all the  fuels burned  well,  and  there  were no
significant handling problems.   It was  found  that the percent emissions of
fuel-bound nitrogen (FBN)  decreased  as  FBN increased and  as outlet
temperature increased.  The maximum  excess NO  levels  (SRC  II heavy
distillate) ranged from 20  to 130  ppm above  the baseline values  of 30  to
130 ppm.  Smoke levels increased with decreasing  hydrogen content and
increasing aromaticity of  the fuels.
                                     F-10

-------
                TABLE  F-4.
SRC II  FUEL OIL  COMBUSTION  RESEARCH PROJECT—EQUIPMENT,
CONDITIONS, AND  EMISSION RESULTS  (12)
Author
KVB (1979)
Con Ed
Babcock
& Wllcox
Ontario
Res. Found.
Southern
Calif.
Edison
Gulf
Science
Technology
Westing-
house
Pratt «
Whitney
Fuel .
(MO/HO) a
SRC II F.O.
(2/1)
SRC II F.O.
(5.75/1)
SRC ll F.O.
(5.75/1)

SRC II F.O.
(VI)
Various
Blends
Range of
Coal
Liquids
Doped
No. 2 oil
Equipment
boiler or
furnace
Package
boiler,
II
44-MW
field
boiler
Package
boiler
Vorto-
metrlc
burner 4-ft-
ID tunnel
Test
tunnel
3-ft-ID
Package
bol ler
Single
combustor
In duct
Single
combustor
Flame configuration for
emissions suppression
Fuel-rich burner, down-
stream 2 air Injector
Staging by fuel redistri-
bution to lower burners
and air redistribution
"Dual-register" burner,
separate control of b
Inner and outer air flows
VortometMc burner + 8-ft.
tunnel section fuel-rich;
2° air; 20-ft second-stage
tunnel
TRW/SCE burner, nonstagfng
Radial fuel jets
Conventional air-atomizing
burner, no staging; effect
of blends on unreduced
emissions
Conventional combustors
for stationary gas turbines,
subscale and full scale
Gas turbine combustor
low-NO design
Firing rate
(10° Btu/h)
(MW)
3
3
3
(44)
45
5
10
1
0.6
--
% Excess
air
overall
6
6
40
--
1-2
11
6.5
10-60
300-
400
300-
400
X
Total air
entering
first stage
60
50
d
50
d
d
100
75
NO ppm
Corrected to
15$ excess air
(lb/10° Btu)
225 (0.3)
320
780
175
400-
480
150
330
200-
600
160-
320
75e
Fuel NOC
yield
(X)
—
8-13
--
— —
22
20-60
40-95
--
Smoke Number
ASTM
(Ib particulates
per 10 Btu)
(0.2)
(o.i)d
( 0.03)
(0.02)
(150 ppm CO)
Acceptable
0.5-9
Various
Acceptable
aRat1o of SRC II middle distillate  (MD) to heavy distrlllate (HD).
bDue to scaledown error, this unit  functioned like a conventional B4W burner.
cThere was no second-stage air Injection downstream from burner.
dW1th combustion Improver additive.
Corrected to 15J 02 1n exhaust;  at full load.

-------
     In a later  program  (Reference 8), an SRC II  blend {5:1 middle-to-heavy
distillates) was tested  on  a  full-scale combustor used in the Westinghouse
30- and 90-MW engines.   The SRC  II blend with a FBN of 9.83 percent had NO
emissions 30 to  120  ppm  higher than No.2 distillate over an outlet burner
temperature range  of 1000  to  2000 F.   Smoke values for the SRC II decreased
with increasing  exhaust  temperature,  which is the opposite of No. 2
distillate.  A major corrosion study (187.5 hours) using various alloys and
SRC II solvent wash  showed  that  the SRC II wash solvent did not appear to
present a corrosion  or  deposit problem any more severe than petroleum-
derived fuels of similar properties.   It was suggested, as with petroleum
fuels, that sodium,  potassium, lead, and vanadium be controlled.

     Extensive  handling  and combustion testing was conducted by Babcock and
Wilcox  (Reference  13) using a package boiler and a 5.75:1 SRC II fuel oil.
The physical properties  of the SRC II fuel oil are shown in Table F-5.  The
SRC II is similar  to No. 5 fuel  oil in density, but in viscosity it behaves
more like No. 2  fuel oil.   This  characteristic made it easy to pump and
handle during the  test  program.   The only handling precaution taken was to
replace all hydrocarbon  seals with Teflon or Viton seals because of SRC
II's phenol/aromatic content.  No handling problems were encountered with
these precautions.   Ambient monitoring programs for benzene and phenols
emissions were  negative.

     The  nitrogen  content of the SRC  II fuel oil was 0.8 percent compared
to  0.03 and 0.2  percent  for No.  2 and No. 5 fuel oils, respectively.
Sulfur  content  of the SRC II fuel oil was essentially the same as  for the
No. 2 fuel  oil  and substantially below thatt of the No.  5 fuel oil.  The
NO  levels  measured  under different conditions are summarized in Table F-6.
Inxall  cases the NO   levels were higher than for the No. 2 and No. 5 fuel
oils.   However,  Babcock and Wilcox concluded that because fuel/air mixing
seems to  play  such a significant role with SRC fuel oil, it would  appear
that two-stage  combustion could effect satisfactory control and bring
emissions below  EPA's new allowable limit of 0.5 pound NOx/MBtu heat input
for coal  liquids.

      Also,  in  spite  of  its high  aromaticity,  the  SRC  II  fuel  oil  showed  no
tendency  to smoke during combustion  testing.   In  fact,  particulate
emissions from SRC  fuel oil  combustion  were  less  than  from  No.  5  fuel  oil
combustion.  Table F-7  compares  the  elemental  analysis  of  ash  from SRC  II
and from  No.  5 fuel   oils.  Recalling  that the  SRC  II  had an  ash  content  of
0.014  percent  versus the 0.025 percent  from  No.  5  fuel  oil,  the  elemental
composition of SRC  II fuel would  be  generally  lower than the  No.  5 fuel  oil
except  for  Fe,  Ca, Mg,  K, Cr, and  Sn.

      The most extensive testing  to date of  an SRC II  fuel  oil  was done by
KVB (Reference  14)  at a Consolidated Edison  44-MW field boiler.   The
•average SRC II  fuel   oil compositon compared  to No.  6  fuel  oil  is  shown in
Table  F-8.   No major boiler  operational  problems  were caused by the
combustion  of SRC II fuel  oil.   The  optimization  of burner hardware  for SRC
II  fuel  oil firing was  not considered  to  be  any  more  stringent  than  would
                                       F-12

-------
               TABLE  F-5.   PHYSICAL HANDLING PROPERTIES OF  SRC  FUEL  OIL VERSUS PETROLEUM DISTILLATES^3^
I
t—•
GO
Parameter
Density
API 0 77°F
API 0 6Q°F
S.G. 0 67°F
Viscosity - Saybolt
Universal Seconds
0 77°F
0 80° F
0 122°F
0 145°F
0 174°F
0 204°F
Pour Point, °F
Sediment by
Toluene Extraction, %
Sediment and Water
(ASTM D96-73)
SRC Fuel Oil3
12.4
11.5
0.9895

	
47.7
37.0
34.4
	
	
Below -35°
0.05
1.0
No. 2 Fuel Oil
40.3
39.0
0.8299

36.3
	
32.4
32.0
	
	
-20°
None
None
No. 5 Fuel Oil
16.0
15.1
0.9652

	
	
267
143
91
67.2
Zero0
0.10
1.9
           a  Ratio of 5.75:1 Middle to Heavy Distillates
                                                                                                   (continued)

-------
                               TABLE  F-5.   (CONTINUED)
Parameter
 SRC Fuel  Oil9
  No.  2 Fuel  Oil
   No. 5 Fuel Oil
Miscibility

     % SRC in


     % No. 2 in


     % No. 2 and
       No. 5 Mixture in

Copper Corrosion
(ASTM D130-75)

Surface Tension,
dynes/cm  @ 22°C

Oxidation Stability
mg/100 ml
(ASTM D2274)
   Totally
   Miscible

 Moderate, 2b-
Color:  Lavender
     34.1
      4.0
                            Totally
                            Miscible
    Slight, Ib-
Color:  Dark Orange
      29.9
      10.7
                                Totally
                                Miscible

                                Totally
                                Miscible
    Moderate, 2c-
Color:  Multicolored
       34.5
a Ratio of 5.75:1 Middle to heavy Distillates

-------
            TABLE  F-6.   NO   VALUES  FOR  SRC  II,  NO.  2 AND  NO.  5
                         FUEt  OILS UNDER VARIOUS  CONDITIONS (PPM)

Fuel
SRC II
No. 5
No. 2
Fuel
Bound N
475
225
100
Atomizer Burner
Design Design Load
410-610 400-600 360-475a
200-225 100-225


3 at 3% 02
be required to accommodate similar changes tor petroleum fuels.   Boiler
thermal  efficiency levels were comparable to those obtained with  No.  6 fuel
oil.  No adverse deposits were observed in the internal boiler either
during the tests or in the post-combustion inspection.

     Nitrogen oxide emissions were nominally 70 percent greater than  those
obtained from the No. 6 fuel oil under both baseline and low  NO
conditions.  Assuming equivalent thermal NO  formation, this  implies  a 10
percent conversion of the differential fuel nitrogen to NO  conditions.
Reductions in NO  through staged combustion were on the oraer of  35 percent
for both SRC II and No. 6 fuel oils.   It would be expected that a  boiler
currently capable of satisfying the EPA New Source Performance Standards
(NSPS) for NOx emissions of 0.3 Ib/MBtu would be capable of satisfying the
proposed 0.5 Ib/MBtu NSPS for coal-derived liquids using an SRC II fuel oil
equivalent to that burned in this test program.

     Particulate mass emissions were nominally lower for SRC  II fuel  oil
than for the No. 6 fuel oil and were below the EPA proposed New Source
Performance Standards of 0.03 Ib/MBtu  under all test conditions (Figure
F-3).   The emissions at full load exhibited a bi-model size distribution
composed of a large number of carbon particles with diameters on  the  order
of 0.05 micron or less and a smaller number of agglomerated particles
larger than 0.1 micron.  The No. 6 fuel oil emissions  did not exhibit this
agglomerated behavior although the actual particle concentrations  were
higher than for the SRC II fuel oil.   No mechanism was determined  for the
observed agglomeration, which was substantially reduced at lower  boiler
loads.  The No. 6 fuel oil emissions contained a number of large  particles
(greater than 1 micron), indicative of an atomization-related formation
mechanism.  Such particles were not observed with the  SRC II  fuel  oil,
indicating potentially better atomization characteristics even though the
actual atomizer components were not optimum for this fuel.

     The PNA emission levels with both fuel oils were  low-less than  (6  x
10-6 Ib/MBtu).  Trends indicated by the PNA data, although qualified  by  the
overall  test uncertainty, indicated that emissions at  half load were  higher
than those for full load with both fuels.  The data also indicated that  the

                                     F-15

-------
TABLE F-7.  ASH ANALYSES  -  SRC FUEL OIL AND NO. 5 FUEL OIL
Sample No.
Sample Description
Spectrographic
Analysis, %c
Silicon as Si02
Aluminum as A1203
Iron as Fe000
c. o
Titanium as TiOo
Calcium as CaO
Magnesium as MgO
Sodium as Na90d
t .
Potassium as K/,0
Nickel as NiO
Chromium as CrgOj
Molybdenum as MoO-j
Vandium as V205
Cobalt as CoO
Manganese as Mn02
F-1442
SRC Fuel
Middile &
Semi-Quantitative
29.5
30.0
18.5
0.7
5.5
1.3
1.75
1.35
0.5
2.6
0.1
0.5
0.06
0.4
Ash From
Oil Sample #1199
Heavy Distillate3
Quantitative
Major Constituent
29.5
27.0
19.0
0.9
4.5
1.2
1.75
1.35
—
—
—
—
F-1444
Ash From
No. 5 Heavy Fuel
Oil, B&W-ARC
(4/7/78) b
Semi -Quantitative
48.2
29.0
7.5
0.7
2.0
0.6
5.73
0.24
2.7
0.4
<0.06
7.8
(Quantitative)
0.06
0.06
                                                                             (continued)

-------
                              TABLE  F-7.  (CONTINUED)
   Sample No.
                                               F-1442
                                                           F-1444
Sample Description
                  Ash From
          SRC Fuel  Oil  Sample #1199
         Middle & Heavy Distillate9
                                                                                      Ash  From
                                                                                  No.  5  Heavy Fuel
                                                                                    Oil, B&W-ARC
                                                                                      (4/7/78)b
  Spectrographic
   Analysis, %c
Copper as CuO
Zinc as ZnO
Lead as PbO
Tin as SnOp
Zirconium as ZrO,
Sulfur as S03e
Semi-Quanti tati ve
       <0.1
       <0.3
        0.06
        0.2
        0.06
                                                          Quantitative
                                                       Major Constituent
                                                              6.1
Semi-Qua'iti tati ve
        0.2
       <0.3
        0.5
        0.06
        0.06
        2.9
a. Ash content 0.014% in flue oil
b. Ash content 0.025% in fuel oil
c. The elements are reported as the oxides because of the analysis
   method used.  This does not imply their presence as such.
d. By Flame Photometer
e. Wet Chemical

-------
                      TABLE F-8.  AVERAGE FUEL PROPERTIES
113)
Parameter
API Gravity at 60°F
H20 % by Volume
Sulfur % by Weight
Carbon % by Weight
Hydrogen % by Weight
Nitrogen % by Weight
Oxygen % by Weight
Heating Value (Btu/lb)
Ash % by Weight
Viscosity (sec. )
No. 6 Fuel Oil
25.0
0.20
0.24
87.02
12.49
0.23
--
19,200
0.02

SRC II Fuel Oil6
11.0
0.28
0.22
85.50
8.86
1.02
4.38
17,081
0.02

     Saybolt Universal  at 100°F                               40
 Viscosity (sec.)
     Saybolt Universal  at 122°F        300   700
 Pour Point (°F-)                         95                   -30
 Flash Point (°F)                      >200                   150
 Note:  Because of sulfur content limitations in New York City,
        the No. 6  oil  utilized by Con Edison exhibits properties
        close to a No.  5 residual oil.
a SRC II 5.75:1 Middle  to Heavy distillate ratio
                                 F-18

-------
H  0.05 +
                                           Half Loaa

                                     [  H  Rema in ing

                                           Carbon
                                                   S04
                                                   No Species  0.031
SRC n  No. 5 SRC II No. 6
 Baseline    Low NOX
            (8 Burner)
                                 SRC n No. 6 SRC II No. 6 SRC H No. &
                                  Low NOx     Baseline     Low  NOx
                                 (6 Burner)
                 FIGURE F-3.   Particulate Emissions
                                     F-19

-------
PNA emissions with SRC  II  fuel  oil  were  nominally higher  than  those  from
the No. 5 fuel oil levels.   All  PNA emission  levels  with  both  fuels  were
substantially lower than  those  obtained  on  other programs (Reference 15)
with coal-fired boilers.   Compared  to  the  shale  oil  and oil-fired  tests
(Table F-9), the  values  for  the SRC II tests  do  not  appear to  be  high.
Because of the limited  number of PNA samples  and uncertainties in  the
combined sampling/extraction/analysis  techniques, the  absolute values of
PNA emissions obtained  must  be  interpreted  with  caution.

     Carbon monoxide  levels  were maintained below 50 ppmv for  all  test
conditions at generally  equivalent  total  excess  air  levels for both  fuels.
Thus, the SRC II  fuel  oil  used  in this program did not indicate any  greater
tendency toward incomplete combustion  than  the existing No.  6  fuel oil.

F.2.2  H-COAL DISTILLATE  COMBUSTION TESTS

     Raw and hydrotreated H-coal distillate were tested  (Reference 9) in  a
combustion turbine, modified to accept small  quantities of liquid (1 to 2
gallons per hour).  The  hydrogen contents  in  the liquids  tested range from
9.8 to 11.8 weight percent,  and the nitrogen  contents  ranged from 0.38 to
0.04 weight percent.   A petroleum-derived  No. 2  fuel oil  was used as a
reference.  The evaluations  included fuel  atomization, coke formation,
combustion parameters,  and emissions.

     The H-Coal fuel  tested  was readily forwarded and  atomized with  no
evidence of incompatibility  with the No.  2 oil used  for  startup.   There was
no problem with deposits  in  fuel lines,  and the  fuel had  excellent
atomizing characteristics.  This test  did  not indicate that the lighter
fractions contained in  the fuels may vaporize more readily than the  bulk  of
the fuel, creating fuel-rich pockets of  gas in the nozzle, and thus
contribute to a coking  problem.  The test  results did  demonstrate that  coke
formation depended on  the amount of hydrotreating.  Increased  hydrotreating
reduced the coke  formation to  negligible levels.  Coke formation would be a
serious consideration  in  the utilization  of all  but  the most severely
hydroprocessed of the  coal liquids.  This  tendency will  have to be
considered in both the  selection of combustor modifications and the  degree
of fuel upgrading required.

     The ratio of NO   measured  with H-Coal  liquids to  the baseline NO
measured from No. 2 fuel  oil  combustion  is  plotted in  Figure F-4 as  a
function of the nitrogen  content of the  fuel.  Note  that  the N0x values
observed (134 ppm) for  the severely hydrotreated H-Coal distillate (10.5
and 11.7 weight percent  H) were lower  than  or equivalent  to those for No. 2
fuel oil (148 ppm), even  though the coal  liquids had a slightly higher
nitrogen content.  In  these  cases the  contribution due to fuel-bound
nitrogen has compensated  for the reduced thermal NOX production rate.  This
is in agreement with  the  lower  exhaust temperatures  observed for H-Coal
fuels compared to No.  2 fuel  oil.

     The level of CO  observed  in each  of the tests was sufficiently  low  (31
to 41 ppm) and consistent to conclude  that CO would  not  be a concern.  The
                                     F-20

-------
                     TABLE F-9.
COMPARISON OF SHALE OIL, SRC II AND TYPICAL PETROLEUM
FUELS AND COMBUSTION EMISSIONS (yg/m3)
I
ro
PETROLEUM FUEL OIL AND SHALE OIL






Chemical
Compound

Naphthalene
Phenanthrldine
Olbenzothlophene
Anthracene/ Phena threne
Fluoranthene
Pyrene
Chysene/benz (a) anthracene
Benzopyrene/Perylenes
Benzo (a) pyrene
Benzo (e) pyrene
Benzo (g.h.i) Perylene
Benzo fluoranthenes
Methyl Anthracenes/Phenathrenes
Benzo (c) Phenanthrene
Methyl Chrysenes
7,12 Demethylbenz(d) anthracene
Benzo(a) pyrene/Benzo(e) Pyrene
Indlno (1,2,3-cd) pyrene
TOTAL
u>
•O


~
•ad
,t >,
U.-T-
O=J
5
0.3
0.6
0.6
1
1
0.1
0.04










9.24
(N
(J^

Ol


IS
U. f-
0 =



0.008 - 2.13
0.007 - 0.098
0.006 - 0.051






«0.1 -0.21





<0.1 - 2.49
^
TJ^


^
•D m
1- >>
U. r-
o =>



0.024
0.009
0.0004
0.00019

0.032
0.032

0.00005






0.10
H
a. «"
"O
3 0)
U t—
o •»-
-^ o
*— T3 CO
O 1- >*
ailZi-
IQ r- •*-
.C ••- +*
t/)O 3






0.42(b>

0.15
0.12
0.23







0.92
SRC II AHO NO. 6 FUEL OIL

~ •sr

o *~l

•j; a)
K O
— O -J
— z
<-> X ^
a: o 3
4/1 _J U-



2.2 - 3.09
0.48 - 0.50
0.30 - 0.38
0.50 - 0.70
<0.003 - O.Ol'2'


0.03 - 0.17
0.1 - 0.2
0.48 - 1.03
0.02 - 0.08
0.10
0.010
0.02 - 0.06
0.11 - 0.18
4.83 - 6.03

_

o _ .
1*
"oj •""*
3 ^
C O
i "a! >«-
U> Wl f~
in S i



2.82
0.68
0.58
0.97
0.019(9)


0.15
0.19
2.14
0.12
0.39
0.060
0.05
0.039
8.21

f_

o
^ ^
"a> H
3 U
~-5 °
T'S ^
0 u< ^
ee « 3
Ul CO U-



1.63
0.41
0.16
0.24
0.008(g)


0.041
0.082
0.49
0.016
0.041
0.008
0.008
0.057
3.19




o
1 -o
3 A
t*. KO
O —I
XI Z
• X ^
O O 3



1.13
0.43
0.35
0.43
o.oog'9'


0.052
0.09
0.35
0.0009
0.09
0.009
0.009
0.052
3.01




o
0 T>
3 10
U- XO
O —I
~~ <^
- % *—
S3S



i.37
0.88
0.49
0.78
0.01


0.059
0.098
0.59
<0.003
0.098
<0.003
0.0)
<0.003
1.39
(a) 49.3% Shale 011, 50. 7X Low Sulfur Crude
(b) Ben 2 (a) anthracene
!c) Range from 3 plants, filter sampling only
d) XAO-2 Resin Sampling
(e) Two runs listed - Low NOX Burner
(f) Methyl Anthracenes
(g) Perylenes

-------
-o
•r—
3
CT
CU
1.4


1.3



1 .2



1.1


i.o-f-


0.9
         0.8
                  Raw "-Coal Distillate (9.1 Wt % H)
                  Mildly HDT H-Coal Distillate (10.5 Wt £ H)
                  Severely HDT H-Coal Distillate (11.7 Wt "J K)
                                             4-
                    .1      .2      .3     .4     .5

                          Fuel-Bound Nitrogen, Wt %
                                                    .6
    Figure  F-4.   Relative NO  Values as a Function of/the Fuel-Bound
                  Nitrogen Content of the H-Coal Fuels^ '
                                   F-22

-------
unburned hydrocarbons (UHCs), however, did  increase with the  percent  of
hydrogen in the fuel suggesting that improved wall cooling, which will  be
required in a can-type combustor for coal liquids, may also return  UHC  to
more typical levels.  Combustor designs  incorporating hot ceramic walls
should be capable of particularly low levels of UHCs.

     Available operating time was insufficient to establish the corrosion,
erosion, or deposition characteristics of each of the fuels.   Because only
relatively  low levels of alkali metals are  present in the fuels,  longer
periods of  exposure are required before  definitive data on the rate of
attack or deposition can be established.  The trace alkali metals found in
the H-Coal  liquids are not organically bound and can be removed by  careful
distillation.  The inorganic materials in the coal liquids are also
significantly reduced by hydroprocessing, presumably by deposition  the
hydrotreating catalyst.  This lowered nonhydrocarbon content  should
contribute  to a longer turbine life.

     In a test program (Reference 5) to  study the effects of  burning
synthetic fuels in g gas turbine, H-Coal 210-480 F distillate, 300-500  F
distillate, 450-650 F distillate, and atmospheric bottoms were combusted in
a subscale  gas-turbine-like combustor.   No  significant handling problems
were encountered, though fuel quality (water content, suspended particles,
etc.) did cause some minor problems.  The NO  levels, were measured  and
compared to No. 2 distillate.  The  results  that showed approximately  30 to
60 ppm more NO  was emitted by the  H-Coal fuels.  Smoke levels were similar
to the No.  2 distillate, but did show some  increase as hydrogen content
decreased or aromaticity increased.

     Later  tests (Reference 8) on a full scale combustor were  conducted
with the H-Coal 210-480°F distillate.  This fuel had a nitrogen content of
0.17 percent (the No. 2 fuel had no nitrogen) yet showed a NOX increase of
only 20 ppm.  Smoke values for the  H-Coal were generally lower than for the

No. 2 fuel  oil except at exhaust temperatures above 1750 F.

F.2.3   COMBUSTION/HANDLING PROPERTIES OF EDS COAL LIQUIDS

     A study by Stone and Webster (Reference 15) concluded that existing
oil-fired boilers can be converted  to accept EDS fuels.  Only minimal
changes to  existing equipment would be required for four of the five  types
of EDS fuels.  The required changes are  associated primarily  with the
incompatability of coal liquids and petroleum-derived fuels.   When  EDS
fuels are mixed with petroleum fuels, a  thick sludge forms that will  cause
problems in fuel oil lines, tanks,  heaters, and other equipment.
Therefore,  all types of EDS fuels will require either separate fill  lines,
or the lines must be washed with a  mutually compatible flux stock  from
dedicated storage tanks.

     The viscosity of three types of EDS fuels studied was less than  that
of a No. 6  petroleum fuel;  therefore, these types will require less
heating for pump transfer.  One type had a  viscosity similar  to that  of No.
                                     F-23

-------
6 petroleum fuel oil  and  will  not  require  any  changes  to  existing  stream
tracing or heaters.   TheQviscosity  of  the  Type 3  EDS  fuel,  which is  a  blend
of streams above £he  700  F  plus  boiling  range, will  require heating  to
approximately 260 F during  storage  and transfer and  400 F during firing to
satisfy burner  viscosity  requirements  of 150 saybolt  second universal
(SSU).  Some existing  piping  systems,  steam tracing,  in-tank  heaters,  and
station fuel oil heaters  will  have  to  be replaced.

     EDS fuels  may  degrade  if  the  liquid is exposed  to air  and  stored  at
temperatures of 100 F or  higher  for several months.   Nitrogen blanketing  of
floating roofs  would  be  required in existing storage  tanks  for  two types  of
EDS fuels.

     Quinlan (Reference  16) discussed  the  results of combustion studies
conducted by Exxon  on various  fuel  oils  (Table F-10).   The  combustion  tests
were  run in a 50 hp Cleaver-Brooks  firetube package  boiler  with a  nominal
firing rate of  15 gallons per  hour.  Smoke emissions,  particulate
emissions, and  gaseous NO  emissions were  measured.   The  Cleaver-Brooks
combustion tests indicate that heavy coal  liquids burn easily and  cleanly.
No problems were encountered  in  tests  areas such as  flame light off, nozzle
fouling, or shutdown,  although the  test  period was  relatively short.   The
coal  liquids burned very  clean as  judged by comparing their smoke  emissions
to those for conventional petroleum fuels. The petroleum fuels were a
regular sulfur  fuel oil  (2.2  weight percent S) and  a low-sulfur fuel  oil
(0.5 weight percent S).   The  coal  liquids  were an Illinois  coal derived
400 F  plus blend and  a minimal 400-1000  F blend which represents the EDS
product without the liquids from FLEXICOKING.

     The primary conclusion from these data  is that  Illinois coal  liquids
burn with smoke levels equal  to  or  lower than  petroleum fuel  oils  at all
levels of excess air. Over the  range  of excess air  from  10 to 30  percent,
the coal liquids gave a  Bacharach  Smoke  Number of 1  or less.   Below  10
percent excess  air, Bacharach Smoke Numbers  for the  coal  liquids increased
more slowly than for  petroleum fuels so  that even at excess air levels of
only a few percent, tolerable  smoke emissions  were  obtained in  this  test.
A second conclusion is that except  at  very low excess air levels (5
percent), the presence of the  heavier  liquids  from  FLEXICOKING at  about  25
weight percent  of the 400 F plus blend did not significantly affect  the
smoke  levels from the coal  liquids.

     Table F-10 compares  particulate and N0x emissions for  the EDS liquids
with those from the low  sulfur and  regular sulfur fuel oil.  The
particulate emissions from the coal liquid fuels were very  low --  roughly
half  from the low-sulfur  fuel  oil,  which is  itself a low particulate fuel.
The regular sulfur  fuel  is  actually more typical  of  a conventional heavy
fuel.  It has four  or five times as many particulate emissions as  the coal
liquids.  As a  frame  of  reference,  the current New  Source Performance
Standards for power generation boilers for ash content is about 0.18 weight
percent.  The regular sulfur  fuel  oil  was  about equal  to  that standard,  and
coal liquids were well below  it.
                                     F-24

-------
              TABLE F-10.  EDS FUEL  OIL  COMBUSTION TEST  PARTICULATE AND NOY EMISSIONS^18)
__ .. 	

Emission Type

Particulate Emissions
Total Particulates,
mG/SCM
Total Particulates,
Wt. % on Fuel
Ash Content of Sample,
Wt. %
NOx Emissions
Nitroqen, Wt. % on Sample
Flue gas N0« Concentration,
PPM {Corrected to 3% 0?)
Heavy Fuel Oil
Liquids

400-1 000°F 400°F
27 33

0.03 0.04

0.027 0.03


0.55 0.81

490 580


Petroleum
Fuel

LSFO
50

0.06

0.02


0.13

300
Oils

RSFO
131

0.17

0.08


0.44

440


Distillate Fuel Oils
Raw Mild H/T Severe H/T
400-800°F 350-650°F 350-650°F No. 2 Fuel Oil
	 	 	 	

_ _ _ _

_ _ _ _


—

163 60 51 57-64
I
ro
en
       LSFO = Low Sulfur Fuel  Oil

       RSFO = Regular Sulfur Fuel  Oil

-------
     The particulate level  for  coal  liquids  is  low  because  that  practically
all  of the carbon burns out.  Total  mass  emissions  from  the  coal  liquids
are only slightly than the  fuel  ash  content; whereas,  in the petroleum
fuels they are significantly  higher.   This difference  probably reflects the
volatility of the heaviest  materials in the  fuels.   All  of  the coal  liquid
is volatile, so it evaporates and  burns as a vapor.  The petroleum  fuels
contain asphaltenes, which  are  not volatile  and form droplet residues that
burn out very slowly.

     The N0x emissions from the coal  liquids were higher than those from
the petroleum fuel oils,  reflecting  their higher fuel  nitrogen content.
The two coal liquids gave 490 and  580 ppm respectively,  compared with 300
and 400 ppm for the two petroleum  fuel  oils.   All of these  values are
higher than the current New Source Performance  Standard  for oil-fired
utility boilers, which is about 225  ppm.   However,  the coal  liquids just
about meet the expected new standard for  coal-fired boilers, which  is 550
ppm.

     Another potential EDS  product is a  distillate  fuel  oil. This  product
ranges from a raw solvent (nominally 400/800 F) to  a severely hydrotreated
350/650 F product (hydrogen consumption:   300  SCF/bbl) (Table F-ll). The
major difference between  EDS coal  liquid  middle distillates and
conventional petroleum products is that  raw  and mildly hydrotreated
products have lower API gravity and  hydrogen content because of  their
highly aromatic nature.   Raw Illinois coal middle distillate products,  both
400/800 F and 350/650 F,  exhibit high sulfur and nitrogen contents  compared
with conventional petroleum products.  Studies  have shown that even mild
hydrotreating (500 SCF/bbl) substantially reduces both sulfur and nitrogen.
With severe hydrotreating (3000 £CF/bbl), the  low ppm  levels indicated  for
the severly hydrotreated  350/650 F are attained.

     The combustion performance of the coal  middle  distillates was
evaluated by burning studies on a  conventional  1 gallon-per-hour domestic
oil burner unit.  Raw and hydrotreated coal  liquids were run in  a domestic
gun burner and the results  were compared  with  results  using a petroleum No.
2 fuel oil at the same combustion  conditions.   The  coal  liquids  burned
cleanly, giving essentially the same smoke number as the petroleum  fuel  at
a given level of excess air.  The  severely hydrotreated  coal liquids (30
API gravity) could be substituted  for the petroleum No.  2 fuel without  any
adjustment of the air shutter.   It is likely that this fuel  could be used
interchangeably with a petroleum No. 2 in the  field.  N0x emissions (Table
F-10) from the raw EDS liquids  were  significantly higher than those from
the petroleum or from the hydrotreated coal  liquid; this can be  attributed
to the higher nitrogen content  of  the raw coal  liquids.   At the  present
time there are no NO  emission  standards  for domestic  fuel  combustion.
                    A
     A study (Reference 5)  of the  combustion characteristics of  EDS process
liquid and EDS process liquid without the 650  F fraction was conducted
using a sub-scale gas-turbine-like combustor.   NOX  and smoke levels were
                                     F-26

-------
                                   TABLE F-ll.  PROPERTIES OF EDS  FUEL
I
IN3
Properties
Handling Characteristics
Gravity, ° API
Flash, °F
Pour, °F
Viscosity, ssu at 100°F
Sediment, Wt. %
Combustion Properties
Higher Heating Value, Btu/lb
Carbon Residue (10% Bottoms),
Wt. %
Hydrogen Content, Wt. %
Environmental Considerations
Sulfur, Wt. %
Nitrogen, Wt. %
Middle Distillate
Fuel Oil
Raw
400-800°F
18
196
-5
38

19000
3.0
10
0.3
0.2
Hydrotreated ASTM Specification
350/650°F No. 2 Fuel Oil
30 30 Min.
120 100 Min.
-70 20 Max.
32 33 Min.

20500
0.01 0.35 Max.
13
0.004
<0.001
Heavy Fuel Oil
Raw EDS 400°F+
Liquid
0
196
40
158


16,700
151,000
0.8
1.0
ASTM Specification
No. 6 Fuel
—
140 Min.
60 Max.
40 - 300


—
—

—

-------
slightly higher than for the  No.  2  distillate.   Over  the  range  of exhaust
temperatures, excess NO  ranged  from  60  to  75 ppm  for the whole process
liquid, which had a nitrogen  content  of  0.08 percent.

F.3  CHEMICAL CHARACTERIZATION OF  INDIRECT  COAL  LIQUIDS COMBUSTION
     No data on the emissions  from  combustion  of  Fischer-Tropsch  or  Mobil
M-Gasoline are available.   However,  the  uncontrolled  emissions  from
methanol fueled automobiles are  reasonably well documented.   Tests indicate
that CO emissions are  approximately  the  same as from  the  gasoline engine
and NO  emissions are  somewhat lower.   Hydrocarbon  emissions  are  about  the
same and are dominated  by  unburned methanol  fuels.  Polynuclear aromatic
emissions are reduced  to as little  as  one-tenth;  but  aldehydes,
particularly formaldehyde,  are increased three- to  five-fold.   No lead  or
sulfur are emitted  (Reference  16).

F.4  CHEMICAL CHARACTERIZATION OF LOW/MEDIUM

     Tables F-12 and F-13  list the  components  of  the  flue gas from the  test
burner that was burning the low-Btu  product gas characterized in  Appendix
E.  It can be seen  that a  wide variety of trace and minor elements can  be
emitted as a result of burning low-Btu gas.  Chemical  analysis  also
indicated that organic species present in the  test  burner flue  gas were
more highly carboxylated than  those  in the uncombusted product  gas.   The
aromatics present were relatively  simple ring  systems, and the  fractions
contained fewer indications of nitrogenous compounds  than the product gas.
Benzo(a)anthracene  was specifically identified in the test burner flue  gas
at 450 yg/SCM.  Benzo(a)pyrene,  dibenzo(a, hjanthracene,  and  7, 12
dimethylbenzo(a)anthracene were present in the product gas but  did not
appear in the fraction of  the  test  burner flue gas  that was analyzed
(Reference 17).
                                     F-28

-------
               TABLE F-12.  Gaseous
                            Low-Btu
Species Analysis Summary:
Test Burner Flue Gas1  '
        Analysis                             Test  Burner  Flue  Gas
Major Components (% _+ 2 )
     C02                                        5.4 ±2.2
     H?                                           NDa
     02 + Ar                                    16. +_ 4.8
     N2                                        77.8 + 5.2
     CO                                           ND
     CH4                                          ND
Sulfur Species (Vppm ± 2  )
     H2S                                          NDa
     COS                                          NDa
     S02                                        103 _+ 122
     CS2                                        2.8 _+ 5.1
     Total volatile sulfur                        NR
C -C Hydrocarbons  (Vppm _+ 2  )
     CH4                                          ND
     C2H6                                         ND
     C2H4                                         ND
     C^ + isomers                                 NDa
     C4 + isomers                                 NDa
     Cc + isomers                                 NDa
      o
     Cg -i- isomers
Nitrogen Species (Vppm +_  2  )
     NH3                                          <0.005
     HCN                                        1.0 +_ 1.0
Metal Carbonyls  (Vppm)                            NR
ND   not detected; NR    no  results.
 One detectable measurement out  of  four  analyses.
                                     F-29

-------
TABLE F-13. Trace and Minor Element Compositi
Low-Btu Test Burner Flue Gas^ '
ons of

Element
Aluminum
Antimony
Arsenic
Barium, Beryllium, Bismuth
Boron
Bromine
Cadmium
Calcium
Ceri urn
Cesium
Chlorine
Chromium
Cobalt
Copper. Dysprosium, Erbium,
Fluorine, Gadolinium
Gallium
Germanium, Gold, Hafnium,
Holmium
Iodine
Iridium
Iron
Lanthanum
Lead
Lithium
Lutetium
Magnesium
Test
Particulate
ug/SCM
1.9
<0.3
0.40
<120
0.16
0.096
0.024
>120
0.34
0.0066
0.99
0.59
0.14
1.2
1.0
0.29
0.20



>120
0.40
3.2
1.3

>120
Burner Flue
Vapor
pg/SCM
14
<11
86
4.6
3.8
0.34
>0.2
660
0.28
1.1
32
36
130
8.1
99
<1
0.20

0.66

190
0.44
12
<0.07

16
Gas
Total
yg/SCM
16
<11
86
>120
0.44
0.44
>0.2
>780
0.62
1.1
33
37
130
9.3 Europium
100
<1.3


0.66

>310
0.84
15
<1.4

>130
                        (Continued)
F-30

-------
TABLE F-13.  (CONTINUED)

Element
Manganese
Mercury
Molybdenum
Neodymi urn
Nickel
Niobium
Osmium
Pal ladium
Phosphorus
Platinum
Potassium
Praseodymium
Rhenium
Rubidium
Ruthenium
Samarium
Scandium
Selenium
Silicon
Silver
Sodium
Strontium
Sulfur
Tantalum
Tell urium
Terbium
Thallium
Test
Particulate
ng/SCM
0.44
0.0011
<0.2
0.025
1.4
0.037


6.8

>120
0.013

0.15


<0.01
<0.3
>120
0.92
>120
3.5
120




Burner Flue
Vapor
yg/SCM
17
16
18

44
0.07


160
1.3
370


<0.2


<0.04
<130
170
a
23
2.0
a




Gas
Total
ug/SCM
17
16
18
0.025
45
.10


170
1.3
>490
0.013

<.35


<.05
<130
>290
0.92a
>140
5.5
120a




                                   (Continued)
          F-31

-------
                          TABLE  F-13.   (CONTINUED)

Element
Thorium
Thulium
Tin
Titanium
Tungsten
Uranium
Vanadium
Ytterbium
Yttrium
Zinc
Zirconium
Test
Particulate
yg/SCM


0.074
2.7

<.04
0.15

<0.02
0.99
0.25
Burner Flue
Vapor
ug/SCM


1.4
18


3.4


12
12
Gas
Total
yg/SCM


1.5
21

<.04
3.6

<0.02
13
12

    SpOo impinger solution.



    S202 impinger solution.



Not listed:  test burner flue gas  .01  g/SCM



SCM at 25°C (770°F) and 101 kPa (1 atm), dry basis.
                                    F-32

-------
                            REFERENCES


 1.   Southern California Edison and Paraho Oil Shale Demonstration,
     Inc. "Emission Characteristics of Paraho Shale Oil as Tested in a
     Utility Boiler".   EPRI AF-709, March 1978.

 2.   Bennett, R.  L. and K. T. Knapp.  "Chemical  Characterization of
     Particulate Emissions from Oil-Fired Power Permits". Fourth
     National Conference on the Environment, Cincinnati, Ohio, October
     T97F:

 3.   Cato,  G. A., L. J. Muzio and R. E.  Hall.  Proceedings from the
     Stationary Source Combustion Symposium, Volume III -- Field
     Testing & Surveys.  EPA-600/2-76-152c, June 1976.

 4.   Finch,  S.  and S.  Morris.  "Consistency of Reported Health Effects
     of Air Pollution". Brookhaven National Laboratory, BNL-21808.

 5.   Singh,  P.  D. et al.  "Combustion Effects of Coal  Liquid and Other
     Synthetic Fuels in Gas Turbine Combustors."  Proceeding of ASME
     Conference.   New Orleans, LA, March 10-13,  1980,  ASME Publication
     80-GT-67.

6.   Leavitt, C., et al.  "Environmental Assessment of an Oil-Fired
     Controlled Utility Boiler."  EPA 600/7-80-087,'April, 1980.

 7.   Carter, W. A., H. J.  Buening, and S. C. Hunter.  "Emission
     Reduction on Two Industrial Boilers with Major Combustion
     Modifications".  EPA-600/7-78-099a, June 1978.

 8.   Bauserman, G. W., C.  J.  Spengler, A. Chohn.  "Combustion Effects
     of Coal Liquid and other Synthetic fuels in Gas Turbine
     Combustors   Part II:  Full Scale Combustor and Corrosion Tests".
     Presented at the Gas  Turbine Conference and Products Show, New
     Orleans, Louisiana, March 10-13, 1980.

 9.   Mobil  Research and Development Corporation. "Upgrading Coal
     Liquids for Use as Power Generation Fuels".  EPRI Report AF-1255,
     December 1979.

10.   Cabal, A.  V., et al.   "Utilization of Coal-Derived Liquid Fuels
     in a Combustion Turbine Engine".  Proceedings of National
     American Chemical Society.   Miami Beach, Florida, September
     TSTE:

11.   Mansour, M. N. "Factors Influencing NO  Production During the
     Combustion of Gulf's  SRC II."  So.  California Edison Final Report
     Number 79-RD-7, March 1979.
                               F-33

-------
12.   Oak Ridge National Laboratory.  "Draft Environmental Impact"
     Statement:  Solvent Refined Coal-II Demonstration Project.  Fort
     Martin, West Virginia, May 19, 1980.

13.   Babcock & Wilcox Co.  "Characterization of SRC II Fuel Oil".
     EPRI Report No.  FP-1028, June 1979.

14.   KVB, Inc.  "Combustion Demonstration of SRC II Fuel Oil in
     Tangentially Fired Boiler".   EPRI FP-1029, May 1979.

15.   Electric Power Research  Institute.  "Effectiveness of Gas
     Recirculation and Staged Combustion in Reducing NO  on a 560-MW
     Coal-Fired Boiler".   EPRI FP-257, September 1976.x

16.   Timourian, H. and F. Milanovich.  "Methanol as a Transportation
     Fuel:  Assessment of Environmental and Health Research".
     UCRL52697, Lawrence Livermore Laboratory, Livermore, California,
     1979.

17.   Kilpatrick, M. P. et al.  "Environmental Assessment:  Source Test
     and Evaluation Report;   Wellman-Galusha (Ft. Snelling)  Low-Btu
     Gasification". EPA-600/7-80-097,  U. S. Environmental Protection
     Agency, Washington, D. C., May 1980.

18.   Quinlan, C.W., and C. W. Siegmund. "Combustion Properties of Coal
     Liquids from the Exxon Donor  Solvent Process".  Proceedings of
     American Chemical Society Symposium Combustion of Coal and
     Synthetic Fuels.Anaheim, California, March 14, 1978.
                                F-34

-------
                            APPENDIX G

                 HEALTH EFFECTS TEST RESULTS FOR

                     SYNTHETIC FUEL PRODUCTS


                         TABLE OF CONTENTS
G.I  Shale Oil Products 	 G-3

     G.I.I  Crude Shale Oil 	 G-3
     G.I.2  Middle Distillates 	 G-4
     G.I.3  Gasoline 	 6-11
     G.I.4  Residual Fuel Oil  	 G-ll

G.2  Direct Coal  Liquids 	 G-ll
     G.2.1  SRC II 	 G-ll
         G.2.1.1   Naphtha 	 6-12
         G.2.1.2  Light Fuel Oil 	 G-14
         G.2.1.3  Heavy  Distillate 	 6-15
     G.2.2  H-COAL Products 	 6-17
         G.2.2.1   Naphtha 	 6-17
         G.2.2.2  Fuel-Oil   	 6-19
     G.2.3  Exxon Donor Solvent 	 6-19

6.3  Indirect Coal Liquids  	 6-19

     6.3.1  Fischer-Tropsch Gasoline 	 G-21
     6.3.2  Mobil-M Gasoline 	 G-21
     6.3.3  Methanol 	 G-21

G.4  Health Effects  of Coal  Gases	 G-22

     G.4.1  SNG 	 G-22
     G.4.2  Low-/Medium-BTU Gases  	 G-23

G.5  Synthetic Fuel Combustion Products  	 G-23
                                6-1

-------
                                 TABLES


Number                                                                 Page

  G-l    Mutagenicity of Shale Oil  and Petroleum Crudes
         In Ames/Salmonella Test 	 G-4

  G-2    Comparison of the Mutagenicity  of  Solvent Refined Coal
         Materials, Shale Oils, and Crude Petroleums in Salmonella
         typhimurium TA 98 	 G-5

  G-3    Distribution of Mutagenic  Activity  in Shale-Derived Oils ... G-6

  G-4    Cytotoxicity of Fossil Fuel Materials and Metals in
         Cultured Vero Cells  	 G-7

  G-5    Effect of Solvent Refined  Coal  Materials, Shale Oil and
         Petroleum Crudes on  Cloning Efficiency and Transformation
         Frequency in Syrian  Hamster Embryo  Cells  	 G-8

  G-6    Skin Tumor Incidence  in Mice at 456 Days  of Exposure to
         Fossil Fuel Materials or Known  Carcinogens 	 G-9

  G-7    Mouse Skin-Painting  Initiation/Promotion  Study 	 G-10

  G-8    Guinea Pig Skin Sensitization Test  Results for Refined Shale
         Oil Products 	 G-ll

  G-9    Comparison of the Acute and Subchronic Toxicities of SRC
         Materials in the Female Wistar  Rat  	 G-13

 G-10    Maternal and Fetal Toxicity in  Rats Following Dosing with
         SRC II Materials from 12 to 16  Days of Exposure.	 G-16

 G-ll    Ames Test Results for Petroleum and H-Coal Products 	 G-18

 G-12    Health Effects Test  Results for H-Coal Fuel Oils 	 G-18

 G-13    Distribution of Mutagenic  Activity  in H-Coal	 G-20
                                 G-2

-------
G.I  SHALE OIL PRODUCTS

     The major commerical shale oil products are anticipated  to  include
crude shale oil, middle distillates (jet fuel and diesel  fuel),  and
residual fuel oil.  Several different shale oil products  are  available  from
the EPA/DOE Fossil Fuels Research Material Facility at  the  Oak Ridge
National Laboratory, and each available product is being  tested  for health
and ecological effects.   Some  results of the from health effects  tests  are
available and are reviewed in this appendix, but no results from ecological
effects testing are yet available.

G.I.I   CRUDE SHALE OIL

     The relative toxicity of crude shale oil has been  investigated in  a
battery of tests including mutagenicity, cytotoxicity,  cell transformation,
epidermal carcinogenesis, and acute oral toxicity tests.  Tables G-l,  G-2,
and G-3 present results of Ames Salmonella tests conducted  on crude retort
shale oil, crude in situ shale  oil, and crude petroleum oils.  The data
presented in these tables indicate that crude retort shale  oil and in-situ
shale oil are slightly more mutagenic than crude petroleum  oil.

     In mammalian cell culture  studies, shale oil was one of  the most
cytotoxic fossil-derived materials tested and was considerably more
cytotoxic than either of the crude petroleum oils tested  (Table  G-4).   As
shown in Table G-5, shale oil also produced a higher percentage  (3 percent)
of transformed cell colonies than crude petroleum (0.2  to 0.4 percent).

     Skin-painting studies with mice  indicate that crude  shale oil is  more
potent than crude petroleum at  inducing tumors.  As shown in  Table G-6,  the
incidences for the high- and medium dose shale  oil group  are  100 percent
and 82 percent, respectively; the incidence for the high- and medium-dose
group for Wilmington crude are  lower  at 42 and  7 percent.   The minimum
latency period is also lower for  shale oil than for Wilmington crude.
Table G-7 presents the results  at 180 days of a mouse skin-painting study
in which doses corresponding to the "medium" dose in the  study discussed
above were administered to 30 mice.   Although the shale oil crudes were
similar in tumor initiating activity  to the petroleum crude,  the Paraho
crude (retort) was a little more  potent than the South  Louisiana crude, and
the Geokinetics crude  (in situ) was a little less potent  than the  South
Louisiana crude (Reference 1).

     Acute toxicity studies measured  the oral  rate LD^Q for shale  oil  at
9.22 mg/kg of body weight.  The LD^r,  for crude  petroleum  was  reported  at
>12 mg/kg  (Reference 1).  Based on the  LDrQ values, both  products  would
be considered slightly toxic in comparison with other organic chemicals
(Reference 11).

     The preliminary limited data which are available for crude  shale  oil
indicate that shale oil may pose  a slightly more severe hazard with  regard
to mutagenicity (Ames  test results) and carcinogenicity (cell transfor-
mation  and epidermal carcinogenesis studies) than crude petroleum.  Further

                                    G-3

-------
           TABLE G-l.   MUTAGENICITY OF SHALE,AND PETROLEUM CRUDES IN
                        AMES/SALMONELLA TESTUJ
     Material                     S. Typhimurium Strain (with activation)

                               TA 1535   TA 1537   TA 1538   TA 98   TA 100


So. Louisiana Crude              Na         N         N        N       0.02
Paraho Crude                     N           0.07      0.55     0.70    0.50
                                           (12.0)     (41.9)    (29.7)    (2.8)
Geokinetics Crude in situ
N
0.03
(4.3)
0.10
(6.0)
0.10
(5.7)
0.9
(1-7)

     aN   No  response

      Revertants  per   g  (average).   Comparisons  of  revertant(s)  per   g
      values  among  strains  can  be misleading  because  there  values  are
      strongly  influenced by  spontaneous  frequencies.

     GThe maximum average number of  revertants  observed  expressed  as  a
      multiple  of the  average spontaneous  reversion frequency.
studies, some of which  are  currently  underway,  will  confirm  or  refute  these
preliminary findings.

G.I.2  MIDDLE DISTILLATES

     The U.S. Navy  tested  petroleum JP-5,  petroleum  DFM  (diesel  fuel
marine), shale JP-5, and shale  DFM  for  primary  dermal  irritation,  primary
eye irritation, and  dermal  sensitization.   They are  also  currently testing
shale-derived JP-5  and  DFM  for  acute  and  sub-chronic toxic effects from
vapor exposure.  Samples of these  petroleum-  and shale-derived  products are
available for testing from  the  Fossil Fuels Research Program at  the Oak
Ridge National Laboratory,  and  several  researchers are conducting  a variety
of tests for toxicity and ecological  effects  (Reference  5).
                                     G-4

-------
TABLE G-2.  COMPARISON OF THE MUTAGENICITY OF SOLVENT REFINED  COAL
            MATERIALS, SHALE OILS, AND CRUDE PETROLEUMS  IN  SALMONELLA
            TYPHIMURIUM TA 98^  '
    Materials                       Revertants/ug of Material

    SRC II
        Heavy distillate                   40.0^23
        Middle distillate                     0.01
        Light distillate                      0.01
    SRC I
        Process solvent                     12.3 +_ 1.9
        Wash solvent                          0.01
        Light oil                             0.01

    Shale Oil
        Paraho-16                           0.60 _+ 0.19
        Paraho-504                          0.59 _+ 0.13
        Livermore L01                       0.65 _+ 0.22

    Crude Petroleum
        Prudhoe Bay                           <0.01
        Wilmington                            <0.01

    Pure Carcinogens
        Benzo(a)pyrene                       114 _+ 5
        2-Aminoanthracene                   5430 + 394
                                G-5

-------
  TABLE G-3.  DISTRIBUTION OF MUTAGENIC ACTIVITY  IN SHALE-DERIVED OILS
(3)

Sample
Shale Oil in situ
Paraho Shale Oil
HDT-Paraho Shale Oil
Wilmington Crude Oil
Recluse Crude Oil
Total
(Rev/Mg)a
178
390
0
5
6
Mutagenic Activity Distribution (%)
Neutral
54
31
0
100
100
Acids
2
0
0
0
0
Bases
42
69
0
0
0
Other
2
0
0
0
0

  Determined from the  linear  portion  of  a  dose-response  curve with  strain
   TA 98
     The only test  results  available  are  from  the  Navy's  skin  and  eye
irritation tests.   According  to  these tests,  all  four  of  the fuels  tested
would be considered  non-irritants;  there  is  no irritation hazard to humans
who come into contact with  them.   However,  one would  expect that frequent
or prolonged contact would  cause depletion  of  skin oils,  making the skin
more susceptible to  irritation  (Reference 6).   In  primary eye  irritation
tests, only shale DFM produced  any  signs  of  irritation.   One rabbit of  six
that were tested by  applying  0.1  ml of undiluted  fuel  to  one eye developed
a very mild redness  and  discharge 24  hours  following  treatment.  At 48
hours, the redness  and discharge  disappeared,  and  the  eye had  returned  to a
normal state of appearance  (Reference 6).

     A repeated insult skin-sensitization study using  guinea pigs  was
carried out to predict whether  allergic contact dermatitis would result in
humans after skin contact with  the  test materials  (Table  G-8).  The size  as
well as the intensity of the  irritation was  evaluated  semi-quantitatively
and reported as the  sensitization response.   The  sensitizing potential  of
the test material was estimated  from  the  number of animals having  at least
a mild sensitization response.   Twenty animals were tested.  The test
material's sensitizing potential  was  judged  "slight"  if  one to three
animals were sensitized, "moderate" for four to ten sensitizations, and
"severe" for 11 to  20 sensitizations.
                                     G-6

-------
    TABLE G-4.   CYTOTOXICITY OF EQSSIL FUEL MATERIALS AND METALS
          IN CULTURED VERO CELLSU;
              Material                   RPE5Q Dose (yg/ml)a
       SRC II
           Heavy distillate                      30
           Middle distillate                    200
           Light distillate                     180

       Shale Oil (S-ll)                          50
           PNA fraction                          40
           Basic fraction                        50
           Neutral  fraction                     200

       Petroleum
           Prudhoe Bay Crude                    350
           Wilmington crude                     190
           Diesel oil #2                        250

       Metals
           Cadmium chloride                     0.3
           Zinc Chloride                        6.8
           Lead chloride                         37
RPE[-n    dose required to reduce number of colony-producing  cells  to
50% Of control value.
                                G-7

-------
TABLE 6-5.  EFFECT OF SOLVENT REFINED COAL MATERIALS, SHALE OIL AND PETROLEUM
            CRUDES ON CLONING EFFICIENCY?AND TRANSFORMATION FREQUENCY IN
            SYRIAN HAMSTER  EMBRYO  CELLSv;

Concentration (vig/ml) Percent of Relative
to produce maximum colonies cloning
Material transformation frequency transformed efficiency (%)
Dimethyl sul foxide 0
Heavy distillate (SRC-II) 20
Shale oil (LERC)a 10
Basic fraction 10
PNA fraction 50
Prudhoe Bay crude 200
Wilmington crude 100
Benzo(a)pyrene 20
0 100
6.8 33
2.7 34
8.9 77
3.4 74
0.4 23
0.2 48
11.0 42
 aLaramie  Energy  Research Center
                                  G-8

-------
                TABLE  G-6.
SKIN TUMOR INCIDENCE IN MICE AT 456 DAYS OF EXPOSURE TO FOSSIL

FUEL MATERIALS OR KNCWN CARCINOGENS(2)
cr>
i
Treatment
Control - Untreated
Vehicle control
(acetone)
Heavy distillate
SRC- 1 1
Light distillate
SRC- 1 1
Shale Oil
Crude Petroleum-
Wilmington
Benzo(a)pyrene
2- Aminoanthracene
Dose
(mg/application)
22.8
2.3
0.23
20.0
2.0
0.2
21.2
2.1
0.21
16.8
1.7
0.17
0.05
0.005
0.0005
0.05
0.005
Tumor
Incidence
0/49
0/47
49/49
47/47
6/48
1/44
1/46
0/41
38/38
41/50
0/45
20/45
3/45
0/46
50/50
44/46
0/50
25/32
0/49
Minimum
Latency (days)
56
72
282
410
427
95
148
260
282
106
232
115
Median .
Latency (days)
95
294
	
213
351
;;;;
143
358
379
Maximum
Latency (days)c
147
372
;;;;
409
	
193
::::
^Number with tumors/rumber at risk
cDays to 50% tumor incidence
Days to 100% tumor incidence

-------
                     TABLE G-7.   MOUSE SKIN-PAINTING  INITIATION/PROMOTION  STUDY
CD
I




Sample


S. Louisiana Crude
Paraho Crude
Geokinetics Crude In Situ
Occidental Crude In Situ
Number of
mice with
tumors
lasting
30 days

5
9
2
0
Total
Number of
tumors
lasting
30 days

7
17
2
0
Average
Number of
tumors/
tumor
bearing
mouse
1.4
1.9
1.0
0
Number of
days to
first
mouse with
tumor

71
59
92
0

                  Days of promotion:   180


                  29  surviving mice  in  group

-------
       TABLE 6-8.  GUINEA PIG SKIN  SEN.SITIZATION  TEST  RESULTS FOR REFINED
                   SHALE OIL PRODUCTS (6)

Number
Showing
Response
Fuel
Petroleum JP-5
Petroleum DFM
Shale JP-5
Shale DFM
24 Hr.
5
7
2
8
48 Hr.
6
9
4
4
Sensitization
Potential
Moderate
Moderate
Slight
Moderate
Mean
Reaction
Score
(24 Hr.)
70
71
50
46

Sensitization
Response
Mild
Mild
Mild
Mild

G.I.3  GASOLINE

     There appears to be no health or ecological  effects  testing  being
conducted on gasolines derived from shale oil.

G.I.4  RESIDUAL FUEL OIL

     There appears to be no health or ecological  effects  testing  being
conducted on residual fuels produced from shale oil.

G.2  DIRECT COAL LIQUIDS

     The available health effects tests  results for  the major  products from
three direct coal  liquefaction processes, SRC  II,  H-coal,  and  Exxon  Donor
Solvent, are summarized in this section.

6.2.1  SRC II

     The developers  of the SRC II process anticipate marketing three major
products: naphtha, light fuel oil, and heavy  fuel  oil  (Reference  9).
Researchers at Battelle Memorial  Institute  in  Richland, Washington  have
conducted a battery of health effect tests  on  these  three  fractions.  In
addition, the EPA/DOE Fossil Fuels Research Materials Facility at the Oak
Ridge National Laboratory has an  SRC II  fuel  oil  blend on  which several
researchers are currently conducting health and ecological  effects  tests
(Reference 5).  So far only limited test  results  are available.
                                     6-11

-------
G.2.1.1   Naphtha

     Petroleum-derived  naphtha  poses  its  greatest  hazard  through  vapor
inhalation.  Accidental or  intentional  ingestion of  naphthas  and  volatile
solvents also poses  a major  hazard.   Skin  contact  generally  results  in
reversible skin  irritation  (References  4,  7).

     Table G-2 shows that the SRC  II  light  distillate  (naphtha)
demonstrated no  mutagenic activity  in Ames  testing (Reference 2).  At
another laboratory,  a naphtha from  South  Louisiana crude  petroleum was  also
found to be nonmutagenic when subjected to  the  Ames  test  (Reference  1).   In
cytoxicity tests conducted  on cultured  mammalian cells  (VERO), a  dose of
180 g/ml was required to produce  a  50 percent  reduction  in  relative  plating
efficiency (RPE).  Thus, SRC  II  light distillate was one  of  the least
cytotoxic fossil-derived materials  tested  (Table G-5)  (Reference  2).
Researchers at Battelle Memorial  Institute  are  conducting skin-painting
studies on mice  (Reference  2).   As  shown  in Table  G-6,  only  one mouse in
the medium- and  high-dose groups  exposed  to light  distillate  had  developed
a grossly observed tumor at  456  days  after  initiation.   No tumors had
developed in the low-dose group.   Thus, preliminary data  from this study
indicate that the tumorigenic activity  of  the  light  distillate is extremely
low (Reference 2).   Petroleum naphtha has  also  been  shown to  exhibit only
very slight tumor initiating  activity in  mouse  skin-painting  studies
(Reference 1).

     Table G-9 presents the  results of oral acute  toxicity  tests  at  LD^Q,
the orally administered dose  (g/kg  of body  weight) required  to kill  50
percent of the adult Wistar  rats  in three  days.  Subchronic  toxicity was
determined by administering  the  product once daily for  five  consecutive
days.  The difference between the  acute and chronic  LD^Q  values indicates
that either the  material or  the  effects of the  light distillate are
cumulative (Reference 2).   On the  basis of  the  acute LD^Q,  (2.3 9/kg),
SRC II naphtha would be considered  moderately  toxic.  Investigators  also
report that SRC  II naphtha,  unlike  petroleum naphthas,  shows  some degree  of
acute toxicity through  skin  absorption  at  a fairly high  dose  level  (1.6
g/kg body weight) (Reference  1).

     A developmental toxicity study was conducted  in which SRC II
distillates were administered to  pregnant  rats.  Such  studies are conducted
because the prenatal organism is  often  more sensitive  to  toxic compounds
than are adults.  Comparedd  to  the  control  group,  the  experimental group
should no significant increase  in  the incidence of malformation of fetus
for dams receiving the  light  distillate during  the first  7 to 11  days of
gestation.   The  frequency of  prenatal  mortality, however, was increased in
dams receiving the light distillate during  days  12 through  16 of the
gestation period (Table G-9).   The  doses  that  were required  to produce
increases in prenatal mortality  approach  the doses that  produce maternal
toxicity effects.  Thus, this test  does not indicate a  greatly enhanced
sensitivity of the embryo or  the  fetus  to  SRC  II light  distillate
(Reference 2).


                                     G-12

-------
TABLE G-9.   COMPARISON OF THE ACUTE AND SUBCHRONK  TOXICITIES  OF  SRC

             MATERIALS IN THE FEMALE WI STAR RAT

Material
Wash solvent (SRC I)
Light distillate (SRC II)
Process solvent (SRC I)
Light oil (SRC I)
Heavy distillate (SRC II)
Middle distillate (SRC II)
Shale Oil
Diesel oil
Crude petroleum
Acute, Subchronic
LD50 LD50b
0.57 (1.66)C (1.50)c
2.30 0.96
2.81 1.04
2.90 2.41
2.98 1.19
3.75 1.48
9.22
11.8
12

 The materials were administered one  time by  gavage  for  the  acute
 toxicity studies.  For the subchronic  studies, materials  were  gavaged
 once daily for five consecutive days.

 LD^Q is defined as the dose  in grams per kilogram  of  body weight
 required to kill 50% of the  animals.   For  the  acute toxicity study,
 this value represents a single dose  while  for  the  subchronic studies,
 the value represents a daily  dose.

 'The LDcQ values in parentheses are  for materials  diluted  in corn oil.
 All other values are for  undiluted  material.
                                  G-13

-------
     Very  few  directly comparable  health  effects  tests  exist  for  SRC-II  and
petroleum  naphthas.   Ames  test  and  skin-painting  studies  indicate that the
two naphthas are  not  significantly  different  in  their mutagenic or
tumorigenic activity.   The SRC  II  naphtha,  however,  may present a more
severe acute toxicity hazard  when  absorbed  through the  skin.

6.2.1.2  Light Fuel Oil

     As  is  the case with  naphtha,  vapor inhalation is the most  significant
method of  exposure to middle  distillate petroleum products (e.g., No.2 fuel
oil).  The  result may be  dizziness, coma, collapse,  or  death.   Exposure  to
high levels of vapors is  generally  followed by complete recovery, although
permanent  brain damage has been reported.  Toxicity via ingestion is
considered  to  be  moderate, and  contact  with the  skin typically  causes
reversible  irritation (Reference 7).   In  general, the toxicity  of middle
distillate  petroleum  products  is related  to the  content of benzene and
other aromatic hydrocarbons.

     In  the Ames  test, SRC II  middle  distillate  demonstrated  no measurable
mutagenic  activity  (Table G-2).   The  Ames test was also conducted on  four
distillation fractions of a crude  petroleum.   The two middle  fractions were
designated  "light gas oil" and  "mid-gas oil".   The light  gas  oil  did  not
demonstrate mutagenic activity, but the mid-gas  oil  did (Reference 1).   In
separate testing, mutagenic activity  toward Salmonella  typhimurium was not
observed when  a No.2  fuel  oil  was  tested  with  activation  by rat or trout
liver extract  (References).

     The mammalian cell  cytotoxicity  of the SRC  II middle distillate  is
approximately  the same as  for  the  light distillate and  the SRC  II middle
distillate  is  one of  the  least  cytotoxic  fossil-derived materials tested
(Table 6-4).   The test data also indicate that SRC II middle  distillate  is
slightly more  toxic than  the  analogous  petroleum-derived  product, diesel
oil No.2.

     The acute toxicity of the  SRC  II middle  distillate is greater than
that of diesel  oil; thus,  it  may  pose  a  somewhat more  severe ingestion
hazard (Table  G-9).   In comparison  with the LDcQ  of other industrial
chemicals,  the SRC  II middle  distillate would  Be  considered moderately
toxic while the petroleum-derived  diesel  oil  would be considered  slightly
toxic.  The differences in values  for the acute  LDcg (3.75 g/kg)  and  the
subchronic  ID™  (1.48 g/kg)  indicate that  either the material  or the
effects  are cumulative (Reference  2).   The  SRC II middle  distillate is
reported to be capable of  causing  skin  burns  (Reference 9) and, thus,
appears to  be  more acutely toxic when absorbed through  the skin than
petroleum-derived middle  distillates.

     In developmental  toxicity  tests, administration of the SRC II middle
distillate  during the first 7 to 11 days  of gestation did not  significantly
increase the incidence of  malformations.   Fetal  weight  losses  and prenatal
mortalities were  only observed  at  doses producing symptoms of maternal


                                     6-14

-------
toxicity.  The frequency of prenatal mortality  was  increased  when  the test
material was administered at 12 to  16 days of gestation  (Table  G-10).   As
was the case for SRC  II light distillate, test  results  suggest  that  the
risk for the fetus is only slightly greater than  for  the mother (Reference
2).

     While more comparable test results exist for the middle  distillates
than for the light distillates, the data base is  still  small  and the
results must be considered preliminary.  Neither  SRC  II middle  distillate
nor petroleum No.2 fuel oil appear  to be mutagenic.   The cytotoxicity of
SRC II and petroleum  middle distillates is similar, although  the SRC II may
be slightly more cytotoxic.  The SRC II middle  distillate  also  appears to
be somewhat more acutely toxic when ingested and  absorbed  through  the skin.

G.2.1.3  Heavy Distillate

     Little information on the toxicity of petroleum-derived  fuel  oils is
available, although some testing for carcinogenicity  has been conducted.
Testing indicates that residual fuels oils are  carcinogenic to  rabbit skin
and mouse cervicovaginal epithelium (Reference  10).   An  "industrial  fuel
oil" (API Gravity 8.3) was found to be a relatively potent carcinogen in
mouse skin painting studies (Reference 11).  Tests  conducted  on several
petroleum fractions indicate that the carcinogenic  materials  in petroleum
are concentrated in the fractions boiling above 675-700  F  (References 11,
6).  Therefore, it is reasonable to expect some correlation between  the
carcinogenic potency  of petroleum-derived fuel  oils and  the extent to which
a  fuel contains fractions boiling above 675 or  700  F.

     The SRC II heavy distillate proved to be the most  mutagenically active
of the SRC II distillates when subjected to Ames  testing  (Table G-2).   The
heavy distillate was  fractionated by a solvent  extraction  procedure  into  an
acidic, basic, and neutral fraction as well as  a  basic  and neutral tar
fraction.  The highest specific mutagenic activity  (number of  revertants
per microgram of material) was found in the basic fraction although  the
basic and neutral tar fractions exhibited considerable  activity as well.
Because the tars constitute a larger portion of the mass of the heavy
distillate, they contribute a larger share of the heavy  distillate's total
mutagenic activity than the basic fraction, despite the  basic  fraction's
higher specific activity.  Further  chemical analysis  and Ames  testing
identified several primary aromatic amines as the compounds  responsible for
the mutagenic activity, including aminonaphthalenes,  aminoanthracenes,
aminophenanthrene, aminopyrenes, and aminochrysenes  (Reference  2).

     In the mammalian cell cytotoxicity tests,  SRC  II  heavy distillate was
one of the most toxic fossil-derived materials  tested (Table  G-4).   It also
was one of the most active compounds in effecting cell  transformations
(Table G-5).  SRC  II  heavy distillate was one of  the  most  potent substances
                                     G-15

-------
                 TABLE G-10.
MATERNAL  AND FETAL  TOXICITY  IN  RATS FOLLOWING  DOSING  WITH
SRC  II MATERIALS FROM  12  TO  16  DAYS OF EXPOSURE?*)















0
1
1— '
en
Agent
Corn Oil
Arocloi-k
Light
Distillate




Middle
Distillate




Heavy
Distillate

Dosea
(g/ kg/ day)
_ _
0.11
0.28
0.56
0.84
1.12
1.41
1.69
0.33
0.65
0.98
1.30
1.63
1.96
0.37
0.73
1.10
Number
Dosedc
14
13
11
12
14
6
7
5
9
11
9
6
6
3
15
13
12
Percent
Deadc
0
0
9
8
43
67
86
80
0
9
11
33
67
100
0
0
17
Number
Pregnant
at 21 d.g.
12
10
8
9
7
1
1
1
9
7
8
4
2
0
4
10
9
Weight
Gain
to 21 d.g.d
148 * 31
101 ± 24
116 * 36
101 37
113 ± 27
32 0
50 ± 0
112 i 0
127+43
149 32
118-40
126 ± 19
94 ± 36
--
129 * 31
85 ± 23
76 ± 23
Percent of
Implants
Resorbed6
I1'
7
4,
23f
41
_
_.
0
5
7
20f
0,
64f
--
9.
66f
69*
Litters
With
Resorptions
1
5
4
4
3
--
20
0
5
5
5
0
2
--
7
9
9
Percent
Malformed
Fetuses6'^
0
0
2
0
1
—
1
0
3
0
0
0
0
--
1
74
60
Litters
With
Fetuses9
0
0
1
0
1
--
0
0
1
0
0
0
0
--
2
5
6
Fetal
Weight
at 21 d.g.h
5.4 / 0.5
4.3 / 0.6
5.5 / 0.5
5.5 / 0.5
5.4 / 0.5
--
4.7 / 0.2
5.1 / 0.3
5.8 / 0.6
5.8 / 0.6
5.1 / 0.4
4.9 / 0.5
4.5 / 0.4

5.3 / 0.5
4.3 / 0.7
4.3 / 0.5
Administered by gavage once daily for five consecutive days; if undiluted, 0.1-1.2 ml given per 300 g body weight.
 Diluted in corn oil and 1 ml given per 300 g  body weight.
 Includes both pregnant and nonpregnant adult  females.
 Body weight gain between 0 and 21 days of gestation (d.g.}; mean * SD.
Calculated on a per fetus rather than a per litter basis; includes resorbed and dead  implants.
 One or more litters with all implants resorbed.
^Combination of soft itssue and skeletal malformations.
 Pooled means of each litter.
    or more dams delivered prematurely; implant data incomplete and not included.

-------
tested for epidermal carcinogenesis.  The  two  rate  groups  given  the highest
dosages had a 100 percent tumor incidence  rate  {Reference  2).  Microscopic
examination revealed that 33 of the 39 mice with  tumors  had  malignant
tumors; 18 of the 39 had microscopic evidence  of  metastasis.   Three mice
had papillomas only (Reference 12).

     Acute toxicity studies indicate that  the  LD^Q  value for the  heavy
distillate is approximately the same as those  for the middle and  light
distillates (Table G-9)  (Reference 2).  Administration of  heavy  distillate
to the experimental group at 7 to 11 days  of gestation did not
significantly increase the  incidence of malformations over that  of  the
control group.  Fetal  weight and prenatal  mortality was  only affected  at
doses producing maternal toxicity effects.  More  severe  fetal  effects  were
observed when the test material was administered  at 12 to  16 days of
gestation.  The frequency of prenatal mortality was increased  in  the
absence of signs of maternal toxicity.  An increased incidence of
malformations was also observed; however,  this was  accompanied by inhibited
maternal weight gains.   It  appears that the risk  for the fetus is only
slightly greater than for the mother  (Reference 2).

     Skin-painting tests indicate that both petroleum-derived  industrial
fuel oils  (Reference 10) and SRC II heavy  distillate (Table  G-6)  pose
considerable skin carcinogenicity hazards.  The limited  test results
suggest that precautions should be taken to prevent human  exposure  to  SRC
II heavy distillate.  Unfortunately, comparable tests have not been
conducted  on analogous petroleum products.  Thus, an assessment  of  the
relative hazards posed by the two products is  not possible at  this  time.

G.2.2  H-COAL PRODUCTS

     Naphtha and fuel oil are two major H-Coal  products  expected  to enter
the market; these two products are discussed in the following  paragraphs.
Although several researchers are currently conducting health and  ecological
effects tests, only limited results are available to date.

G.2.2.1  Naphtha

     H-Coal naphtha can  be  produced either as  a primary  naphtha  from the
H-Coal syncrude operation or by hydrocracking  heavier primary  H-Coal
products such as gas oil (Reference 13).   Calkins et al  (Reference  1)
tested naphtha from the  syncrude mode for  mutagenicity and tumor-inducing
potential.  The coal-derived naphtha was found  to be non-mutagenic  (Ames
test) as was a petroleum derived naphtha  (Table G-ll).   No data  is
available  on the mutagenicity of naphtha produced by hydrocracking  heavier
H-Coal products.

     The primary H-Coal  naphtha contains  levels of  sulfur, nitrogen, and
oxygen that are high compared to petroleum-derived  naphthas  or naphtha
produced by hydrocracking H-Coal gas  oil  (Reference 13).   The phenols
content (3.1 percent by  volume) of primary H-Coal naphtha  indicates that


                                    G-17

-------
     TABLE G-ll.   SUMMARY:  AMES TEST,RESULTS FOR PETROLEUM AND H-COAL
                             PRODUCTSu;
     Material
Test Results
South Louisiana Crude Petroleum
     Naphtha
     Light Gas Oil
     Mid-gas Oil
     Residue
     Crude Oil
Nonmutagenic
Nonmutagenic
Mutagenic
Mutagenic
Mutagenic
H-Coal Liquid Syncrude Mode
     Naphtha
     Light Gas Oil
     Atmospheric Still Overheads
     Atmospheric Still Bottoms
     Vacuum Still Overheads
Nonmutagenic
Nonmutagenic
Nonmutagenic
Mutagenic
Mutagenic
         TABLE G-12.  HEALTH EFFECTS TEST RESULTS FOR H-COAL FUEL OILS
                                                                       (15)
     Tests
                               Raw
 Hydrotreatment
  Low          Med.
High
Mutageni
city
(Ames)
Tumor Production
Cy tot oxi
city

High
Medium
Medium
High
No Response
Medium
High
No Response
Medium
No
No
Low
Response
Response

                                     6-18

-------
thiS would product pose a significant hazard if spilled  into  an  aquatic
environment.   The phenolic content of most petroleum products  is  less  than
1 percent (Reference 14).

     Ames test results indicate that H-Coal naphtha and  petroleum naphtha
are both mutagenically inactive.  Primary H-Coal naphtha's  relatively  high
phenol content suggests that it is likely to be more toxic  to  aquatic
organisms than petroleum naphthas.  There is insufficient information
available to compare the relative toxicities of the primary H-Coal  naphtha,
naphtha from hydrocracked H-Coal gas oil, and petroleum  naphtha.

G.2.2.2   Fuel-Oil
     Atmospheric still bottoms can be hydroprocessed  into  acceptable  No.2
fuel oil blending stocks (Reference 13).  Untreated atmospheric  still
bottoms exhibit mutagenic activity in Ames testing  (Tables G-12  and G-13),
but data on the mutagenicity of the hydrotreated H-Coal  blending stocks  is
not available.

     Health effects tests for middle distillates from  H-Coal  operated  in
the fuel oil mode have been conducted and are  summarized in  Table G-12.
Comparable test results from petroleum middle  distillates  are  not
available.

6.2.3   EXXON DONOR SOLVENT

     The major Exxon Donor Solvent products  expected  to  enter the market
include naphtha and fuel oil.  Health effects  tests are  currently being
conducted on EDS products but no  results are yet available (Reference  1).

G.3  INDIRECT COAL LIQUIDS

     The major indirect coal liquefaction products  expected  to be marketed
include Fischer-Tropsch gasoline, Mobil-M Gasoline, and  methanol motor
fuels.  Only two health effects tests have been conducted  on a Fischer-
Tropsch gasoline, and none have been conducted on Mobil-M  gasoline.   The
effects of methanol have been studied for many years,  and  new risks would
be attributable to exposure to a  larger population  because of the new use
of methanol.

     The toxic properties of petroleum  gasoline are similar  to those  of
naphthas and solvents.  Vapors pose the most  serious  hazard.  Exposure to
extremely high levels may result  in dizziness, coma,  and  collapse.   Such
exposures are usually followed by complete  recovery,  although permanent
brain damage following massive exposure has  been  reported  (Reference  16).
High vapor levels may also act as a simple  asphyxiant (Reference 7).

     Gasoline can also cause irritation and  other  disturbances  if it  comes
in to contact with the eyes.  The acute toxicity by ingestion is considered
to  be moderate (Reference 7).  Skin-painting studies  revealed that gasoline
was not carcinogenic  to the  skin  of mice  (Reference 11).  In general, the

                                    6-19

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                          TABLE G-13.   DISTRIBUTION OF MUTAGEMIC ACTIVITY IN H-COAL
                                                                                     (3)
ORNL
Ref. No.
1601
1602
1603
1604











Sample
H-Coal Distillate (raw)
HOT H-Coal Distillate (low severity)
HOI H-Coal Distillate (medium severity)
HOT H-Coal Distillate (high severity)
H-Coal ASB (syn)
H-Coal VSOH (syn)
H-Coal VSB (syn)
H-Coal ASOH (FO)
H-Coal ASB (FO)
H-Coal VSOH (FO)
H-Coal VSB (FO)
Composite Crude Oil
Louisiana-Mississippi Sweet Crude Oil
Wilmington Crude Oil
Recluse Crude Oi 1
Total
(Rev/mg)a
350
540
210
0
1,230
4,100
2,200
0
140-
4,100
6,000
175
75
5
6
Mutagenic Activity Distribution (%)
Neutral
63
100
100
0
63
76
25
0
0
74
13
95
100
100
100
Acids
0
0
--
0
0
0
0
0
0
0
0
2
0
0
0
Bases
37
0
--
0
37
24
60
0
100
26
85
3
0
0
0
Other
0
0
--
0
—
—
—
--
--
--
--
0
0
0
0
CD
I
        Determined  from the linear portion of  a  dose-response curve with strain TA-98

-------
toxicity of gasoline is related to its content of  benzene,  a  suspected
human carcinogen (References 17, 18), and other aromatic hydrocarbons.
Other additives, such as tetraethyl  lead, could also alter  the  overall
toxicity of gasoline (References 4,  7).

G.3.1   FISCHER-TROPSCH GASOLINE

     Fischer-Tropsch (F-T) gasoline  has been tested for its carcinogenic
potential.   Skin cancer was not induced by the application  of F-T  gasoline
to the skin of mice or rabbits.  Injection into the thigh of  rats  did,
however, cause carcinomas attributable to the treatment in  two  of  the 15
tested rats (Reference 19).

     Examination of the chemical composition of F-T gasoline  indicates  the
absence of N and S heterocyclic compounds and an aromatics  content  that is
only slightly lower than in petroleum gasoline (see Appendix  E,
Section E.3.1).   The induction of cancer in rats by injection indicates
that F-T gasoline may pose a hazard  by accidental  parenteral  introduction
(e.g., through a cut in the skin).   Similar testing has apparently  not  been
conducted on petroleum gasoline.  The similarity in chemical  composition
and the result of skin-painting studies indicate that the health effects
from F-T and petroleum gasoline are  not likely to  be significantly
different.   No testing of F-T gasoline for ecological toxicity  has
apparently been conducted.

G.3.2  MOBIL-M GASOLINE

     No health or ecological effects tests have been conducted  on  Mobil-M
gasoline (Reference 20).  The absence of heterocyclic compounds and the
similarity between Mobil-M gasoline  and petroleum  gasolines in  aromatics
content provide no reason to believe that the two  products  will cause
significantly different health or ecological effects (see Appendix  E,
Section E.3.2).

G.3.3  METHANOL

     The use of methanol as a fuel would normally  result in low and
moderate exposure via inhalation and skin absorption of the people  involved
with the transportation and delivery of the fuel.  Accidental exposures to
high levels via inhalation and skin  absorption could also be  expected.
Relatively few exposures via ingestion are anticipated.

     Once methanol enters the body it is rapidly dispersed  throughout the
body.  The effects of methanol  include inebriation,  vomiting, abdominal
pain, visual disturbances, shortness of breath, delirium, unconsciousness,
coma, and death (Reference 16).   Individual susceptibility  varies, but  a
dose lethal to humans is generally from two to eight ounces (Reference  4).
Methanol is metabolized and excreted very slowly  (Reference 16).   This
suggests that the effect of chronic  low-level exposures may be  cumulative
                                     G-21

-------
and produce eye and central  nervous  system  damage equal to that which
results from higher level acute  exposures.  The extent to which this occurs
is not known (Reference  21).

G.4  HEALTH EFFECTS OF COAL  GASES

     Several laboratories are  conducting  toxicity studies on  coal  gases;
however, very few results are  yet  available.   Most of these studies are
being sponsored by the U.S.  Department  of Energy.  For example, the Argonne
National Labortory is conducting toxicity studies on process  streams from
high-Btu coal gasification.  The Morgantown Energy Technology Center and
the Lovelace Inhalation  Toxicology Research Institute are conducting
toxicological evaluation of  effluents  and process streams from low-Btu
gasifiers.  The results  of tests performed  by  Arthur D. Little,  Inc. on
low-Btu coal gas  are  available and are  briefly summarized in  the  following
paragraphs.

G.4.1   SNG

     Examination  of the  chemical composition  of SNG  reveals three
components with specific toxic effects:   carbon monoxide, hydrogen sulfide,
and metal carbonyls.  The  remaining components, methane, ethane,  carbon
dioxide, nitrogen, argon,  and  hydrogen,  do  not have  specific  toxic effects
but can act as  simple asphyxiants.  Signs of  asphyxia could result if their
combined concentration  is  allowed  to exceed 20 to 30 percent  by  volume  in
inspired air (Reference  22).

     Carbon monoxide  acts  as a chemical  asphyxiant.  However, standards  for
pipeline gas generally  require the CO  content  to be  less than 1000 ppmv.
It is anticipated that  crude SNG would  be sufficiently upgraded  to meet
this criteria.  Concentrations of  hydrogen  sulfide,  as low as 20  to 150
ppm, can act as an irritant  to the eyes  and respiratory tract
(Reference 7).  Prolonged  exposure may  result  in pulmonary edema  and higher
concentration exposures  can  result in  central  nervous system  depression  and
death (Reference  22).  Considering the  low  concentration in a typical SNG
(0.2 ppmv), hydrogen  sulfide does  not  appear  to pose a significant hazard.

     The metal   carbonyls that  are  potentially  present in SNG  include nickel
tetracarbonyl,  Ni(CO)4,  and  iron pentacarbonyl, Fe(CO)c,  (Reference 23).
Nickel carbonyl is an extremely toxic  substance; a lethal exposure for
humans is estimated to be  30 ppm for 30  minutes (Reference 24).   Chronic
exposure to nickel carbonyl  has been implicated epidemiologically to cancer
of the lungs and  nose (Reference 22).   It is  also a  recognized carcinogen
in animals  (Reference 25).   Iron carbonyl is  also highly toxic;  however,  it
is less toxic than nickel  carbonyl (Reference  7).  The toxic  effects of
inhaling iron carbonyl  include dizziness, nausea, difficult breathing,  and
possibly death  (Reference  7).

     No direct  biological  effects  test  results are available  yet  for SNG.
Based on chemical composition, it  does  not  appear that hydrogen  sulfide
levels will be  high enough to  pose a health hazard,  and carbon monoxide

                                     G-22

-------
levels are not likely to exceed those  in natural  gas.   It  is  possible  that
SNG will  contain metal carbonyls; however, the extent to which  they  will
actually be produced in commercial-scale plants  is yet  to  be  determined.
Unless metal  carbonyls are present, it does not  appear  that SNG will cause
significantly different health effects than natural gas.

G.4.2   LOW-/MEDIUM-BTU COAL  GAS

     EPA studies have involved testing of particulates  and  resin  extracts
from low-Btu gas from a Wellman-Galusha gasifier  (Reference 26) using
liqnite.  The particulates and extracts were obtained using the Source
Assessment Sampling System (SASS) which consists  of a series  of impingers,
filters, and resins for collecting of  particulates and  gaseouse impurities.
The extracts were subjected to the Ames mutagenicity test, cyctotoxicity
testing, and an acute toxicity test.   No mutagenic activity was exhibited
by the extracts, although they were extremely toxic to  the tester  strains
and could only be tested at concentrations less  than 10 yl/plate.   In  vitro
toxicity test results using Wl-38 human lung fibroblast cells indicated
moderate cytotoxicity.  Rats exhibited no signs  of toxic or pharmacological
effects when the extracts were orally  administered.  No mortality  was
recorded, indicating the oral ID™ for each test  substance  is greater  than
lOg/kg (Reference 26).          DU

G.5  SYNTHETIC FUEL COMBUSTION PRODUCTS

     Mutagenicity and cytotoxicity tests conducted on SASS train  extracts
of sampled test burn flue gas are the  only health effects  test  results
available on the combustion products of synthetic fuels.   The gas  being
combusted was from a low-Btu Wellman-Galusha gasifier using lignite.   No
mutagenic activity nor cytotoxicity was exhibited by the extracts
(Reference 26).  Mutagenicity tests on shale-derived DFM (diesel  fuel
marine) are currently being conducted  (Reference  5).
                                     G-23

-------
                            REFERENCES
 1.  Calkins, W.H., Deye, J.F., King, C.F., Hartgrove, and D.F. Krahn.
     Synthetic Crude Oils.  Carcinogenicity Screening Tests.
     C004758-2, Department of Energy, Washington, D.C. , 1979.

 2.  Battelle Pacific Northwest Laboratory.  "Biomedical Studies on
     Solvent Refined Coal (SRC  II) Liquefaction Materials:  A Status
     Report."  U.S. Department of Energy Contract EY-76-C-06-1830,
     PNL-3189, October 1979.

 3.  Rao, T.K. and J.L. Epler.  Second Symposium, "In Vitro Toxicity
     of Environmental Comples Mixtures," Wil liamsburg, Va.  March,
     1980.

 4.  Gleason, M. N., et al .  Clinical Toxicology of Commercial
     Products, Third Edition.  The Williams and Wil kins Company, 1969.

 5.  Griest, W.H., D.L. Coffin, and M.R. Guerin.  "Fossil Fuels
     Research Matrix Program."  ORNL/TM-7346 June 1980.

 6.  U.S. Navy, Information provided to D.D. Evans of TRW, March 1980.

 7.  Sax, N.I. Dangerous  Properties of Industrial Materials, Fourth
     edition.  Reinhold Publishing Company, 1975.

 8.  Payne, J.F.,  I. Martins and A. Rahimtula.  "Crankcase Oils:  Are
     They a Major  Mutagenic Burden in the Aquatic Environment?"
     Science, 200:  329-30, 1978.

 9.  Pittsburg and Midway Coal Mining Co.   "Demonstration Plant
     Marketing Plan.  SRC II Demonstration  Project."  Prepared for
     U.S.  Department of  Energy.  FE-3055-T13, July 31, 1979.

10.  Bingham, E.,  R.P. Trosset, and D. Warshawsky.  "Carcinogenic
     Potential of  Petroleum Hydrocarbons, A Critical Review of the
     Literature."  Journal of Environmental Pathology and Toxicology,
     3:  483-563,
11.  Kettering Laboratory.  "Investigation of the Potential Hazards of
     Cancer of the Skin Associated with the Refining of Petroleum.
     Final Report."  API Research Project MC-1, October 20, 1959.

12.  Battelle Pacific Northwest Laboratory.  "Appendix to Biomedical
     Studies on Solvent Refined Coal  (SRC II) Liquefaction Materials:
     A Status Report."  PNL-3189-Appendix, December, 1979.
13.  Gim, Tan and A.J. de Rosset.  "Hydrocracking of H-Coal Process
     Derived Gas Oils," I
     FE-256623, November"

                               G-24
Derived Gas Oils," Upgrading of Coal Liquids:  Interim Report
                    1978.	

-------
14.   Giddings, J.M., B.R.  Parkhurst, C.W. Gehrs, and R.E. Millemann.
     "Toxicity of a Coal  Liquefaction Product to Aquatic Organisms."
     Bull. Environmental  Contam. Toxicology, 25, 1-6 (1980).

15.   Kolber, A.R., R.S.  DeWaskin, and D.R.  Greenwood.   "lexicological
     Studies on Coal-Derived Synthetic Fuels Products  and By
     products."  Prepared  for U.S.  Environmental Protection Agency,
     Industrial Environmental Research Laboratory by Research Triangle
     Institute,.   Research Triangle Park, North Carolina.  August
     1980.

16.   Cornish, H.J.  "Solvents and Vapors,"  Toxicology, The Basic
     Science of Poisons.   First Edition, L.J. Casarett and J. Doull,
     Eds., MacMillan Publishing Co., Inc. New York 1976.

17.   Carcinogen Assessment Group's (CAG) List of Carcinogens.  U.S.
     Environmental Protection Agency, July  14, 1980.

18.   International Agency  for Research on Cancer, IARC Monographs on
     the Evaluation of Carcinogenic Risk of Chemicals  to Man, WHO
     Publications Center,  Albany, New York, Volume 7,  p. 203 1974.

19.   Hueper, W.C.  Experimental Carcinogenic Studies on Hydrogenated
     Coal Oils II; Fischer-Tropsch Oils, Industrial  Medicine and
     Surgery.  October 1956.  pp.459-462.

20.   Mobil Research and Development Corporation, Telephone
     conversation with Max Schreiner and Dr. Woo Young Lee  July 28,
     1980.

21.   Timourian, H. and F.  Milanovich.  "Methanol As  A  Transportation
     Fuel:  Assessment of  Environmental  and Health Research."
     UCRL52697, Prepared by Lawrence Livermore Laboratory Linden U.S.
     Department of Energy  Contract Number W-7405-ENG-48.  June 18,
     1979.

22.   Casarett, L.J.  "Toxicology of the Respiratory System,"
     Toxicology, The Basic Science of Poisons, First Edition.  L.J.
     Cararett and J. Doull, Eds. MacMillan  Publishing  Co.,  Inc.  New
     York, 1976.

23.   C.F. Braun and Company.   "Carbonyl Formation in Coal Gasification
     Plants."  Prepared for Energy Research and Development
     Administration and American Gas Association, FE-2240-16, December
     1974.

24.   American  Industrial Hygiene Association:   Nickel  Carbonyl.

25.   International Agency for  Research on Cancer.   IARC  Monographs  on
     the Evaluation of Carcinogenic Risk of Chemicals to Man.  WHO
     Publications Center,  Albany, New York, Volume  II, p. 75, 1976.

                               G-25

-------
26.  Kilpatrick, M.P., et  al.   "Environmental Assessment:  Source Test
     and Evaluation Report,  Wellman-Galusha  (Ft.Snelling)  Low-Btu
     Gasification."  EPA-600/7-80-097,  U.S.  Environmental Protection
     Agency, Washington D.C.,  May  1980.

27.  Pittsburgh  and Midway Coal  Mining  Company.   Response  to  Public
     Hearings on SRC-II Demonstration Plant,  Correspondence from
     Pittsburgh  and Midway to  U.S.  DOE, August  1980.
                                G-26

-------
                                TECHNICAL REPORT DATA
                         (Please read Instructions on the reverse before completing)
1. REPORT NO.
EPA-600/7-81-025
2.
                           3. RECIPIENT'S ACCESSION-NO.
4. TITLE AND SUBTITLE
Environmental Aspects of Synfuel Utilization
                           5. REPORT DATE
                            March 1981
                                                      6. PERFORMING ORGANIZATION CODE
7. AUTHOR(S)
                           8. PERFORMING ORGANIZATION REPORT NO.
M. Ghassemi and R. S. Iyer
9. PERFORMING ORGANIZATION NAME AND ADDRESS
TRW, Inc.
One Space Park
Redondo Beach,  California  90278
                           10. PROGRAM ELEMENT NO.
                            CCZN1A
                           11. CONTRACT/GRANT NO.
                            68-02-3174, W.A.  18
12. SPONSORING AGENCY NAME AND ADDRESS
 EPA, Office of Research and Development
 Industrial Environmental Research Laboratory
 Research Triangle Park, NC 27711
                            13. TYPE OF REPORT AND PERIOD COVERED
                            Task Final; 3/80-2/81  	
                           14. SPONSORING AGENCY CODE
                             EPA/600/13
15. SUPPLEMENTARY NOTES IERL.RTP project officer is Joseph A. McSorley, Mail Drop 61,
919/541-2827.
16. ABSTRACT
          The report gives results of a review of the environmental concerns relating
to the distribution, handling, and end use of synfuel products likely to enter the mar-
ket place by the year 2000, and assigns priority rankings to products from the stand-
point of environmental concerns. The report: reviews available data on the physical,
chemical, and health effects  characteristics of synfuel products and the environmen-
tal significance of such characteristics; analyzes the potential environmental impacts
and regional implications associated with the production  and end use; and ranks the
products  from the standpoint of environmental concerns and mitigation requirements.
Review results indicate that: (a) wide-scale transportation, distribution,  and end use
of certain synfuel products can present significant threats  to the environment and the
public health; (b) based on gross characteristics, synfuel products appear to be sim-
ilar to petroleum products, but detailed characterization data are not available to
judge their relative safety; and (c) synfuel test and evaluation programs  currently
underway or planned provide excellent opportunities for the collection of  some of
the required environmental data.
17.
                             KEY WORDS AND DOCUMENT ANALYSIS
                DESCRIPTORS
               b.lDENTIFIERS/OPEN ENDED TERMS
                                                                     COSATi Field/Group
 Pollution
 Assessments
 Coal
 Liquefaction
 Coal Gasification
 Shale Oil
               Pollution Control
               Stationary Sources
               Synfuels
               Environmental Impacts
13B
14 B
08G
07D
13H
13. DISTRIBUTION STATEMENT
 Release to Public
                                          19. SECURITY CLASS (This Report)
                                           Unclassified
                                        21. NO OF PAGES
                                            402
               20. SECURITY CLASS (This page)
                Unclassified
22. PRICE
EPA Form 2220-1 (9-73)
                                        G-27

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